Shared Hosting using Linux

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http://serverfault.com – I am planning to set up a server hosting multiple websites on a single high-end Linux server on Virtualization-enabled Hardware using a LAMP stack. I have decided to go with Centos 6.2 as a KVM host with two Virtual Machines running on top of it, of similar Centos Version. One to act a Web Server and other act as a MySQL database server. I plan to use Joomla CMS for the websites. Can any one guide me, is it a good choice or are there any other better tools I can use? Also, Is it best practice to put all websites in a single database or individual databases. (HowTos)