I have been using Apache installed locally on Windows similar to what Cody described in his post. you can have the ability to use different host names by editing the hosts file in the C:\windows\system32\drivers\etc of windows installations. this file allows you to map different host names to 127.0.0.1, and then you can place different values for the ServerName config option in Apache.
if you open the hosts file, you'll see localhost already in there. I'm pretty sure this is how windows knows what IP belongs to that word. you can enter as many of your own mappings as necessary.
I'm a little wary this practice because it adds a configuration item in an obscure place, but the ability to access multiple sites on my computer through different host names is worth it to me.
<VirtualHost 127.0.0.1:81>
ServerName projectname
DocumentRoot "C:/htdocs/projectname"
<Directory "C:/htdocs/projectname/">
Options Indexes FollowSymLinks Includes
Order deny,allow
Deny from all
Allow from 127.0.0.1
DirectoryIndex index.php
</Directory>
</VirtualHost>
this should allow you to access the site in C:\htdocs\projectname using http://projectname:81. I could add another VirtualHost section in the config using projectname2 for my ServerName and point that to a site located in C:\htdocs\projectname2, just add another line to the hosts file mentioned above pointing projectname2 to 127.0.0.1.
also note that the Allow from 127.0.0.1 of Cody's config only allows connections to Apache from the local computer, and nobody else, which is a good practice to ensure security.