USING DEBIAN
(all my experiences with v6, squeeze... but should be mostly the same with any Debian based distro)
Assumption: you have a base "LAMP" system installed (Apache2/MySQL/PHP).
PART 1 - Installing and base setup of Wordpress
# apt-get install wordpress (debian has a maintained package)
# chgrp www-data /etc/wordpress/*
# mkdir /usr/share/wordpress/wp-content/uploads
# chown -R www-data:www-data /usr/share/wordpress
Note/Disclaimer/Opinion: Argue all you want, security already isn't an issue if you are hosting Wordpress.
PART 2 - Setting up Apache2 so that "blog.yourdomain.net" points to /usr/share/wordpress
# vi /etc/apache2/sites-available/blog.yourdomain.net
<VirtualHost *:80>
ServerName blog.yourdomain.net
DocumentRoot /var/www/blog.yourdomain.net/
<Directory /var/www/blog.yourdomain.net/>
AllowOverride All
Order Deny,Allow
Allow from all
</Directory>
</VirtualHost>
# a2ensite blog.yourdomain.net
# ln -s /usr/share/wordpress /var/www/blog.yourdomain.net
# /etc/init.d/apache2 restart
PART 3 - Using the example script to setup the database and such for Wordpress.
Note: you may have to edit /etc/hosts so the machine resolves blog.yourdomain.net to itself
# vi /etc/hosts
add: 127.0.0.1 blog.yourdomain.com blog
# cd /usr/share/doc/wordpress/examples
# bash setup-mysql -n username blog.yourdomain.net
setup-mysql [-n NAME] [-h | -d | -b] FQDN
Creates by default a Wordpress mysql configuration depending on required fully qualified domain name(FQDN).
Options:
-n name for the mysql user and database
-h help
-d destroy and purge
-b backup
Example: You want your blog to be served from http://blog.example.com for user 'wordpress'.
Then run: sudo bash setup-mysql -n wordpress blog.example.com
PART 4 - Now go to blog.yourd0main.com and finish Wordpress install.
Note: you should be able to repeat from Part 2 and host as many different Wordpress sites as you want.
Not sure if you need to enable mod_rewrite, if so: # a2enmod rewrite