Does LSWS support name based virtual hosts for the same domain?
i.e. i would like to treat www.xxxxxx.yy and home.xxxxxx.yy as separate
virtual hosts each with own home directory.
Yes you can. Lsws allows you to enter global "domain.com" for the vhost which translate to "*.domain.com" or you can go granual and just enter "home.domain.com" for that vhost. It's up to you.
Yes, absolutely.
Just create two virtual hosts pointing to their respective document root directories, then add listener virtual host mapping with their respective domain names. :-)