Problem with codeigniter multi site setup

Hi,

I have setup my CI folders in my local machine as follows;

F:\dev\CodeIgniter_1.7.2
\.metadata
\app1
\app2
\htdocs_app1
\htdocs_app2
\system
\system_ci_1.7.2
\user_guide
index.php
license.txt

Have specified the system and application dir paths in the index.php files in htdocs_… dirs too;
The index.php in \htdocs_app1 has;
$system_folder = “…/system_ci_1.7.2”;
$application_folder = “…/app1”;

The index.php in \htdocs_app2 has;
$system_folder = “…/system_ci_1.7.2”;
$application_folder = “…/app2”;

The virtual hosts setup is as follows;

<VirtualHost *:80>
ServerAdmin webmaster@localhost
DocumentRoot "F:/dev/CodeIgniter_1.7.2/htdocs_app1"
ServerName mybits.localhost
DirectoryIndex index.php index.html index.htm index.shtml
<Directory "F:/dev/CodeIgniter_1.7.2/htdocs_app1">
    Options Indexes
    AllowOverride All
    Order allow,deny
    Allow from all
</Directory>
</VirtualHost>

<VirtualHost *:80>
ServerAdmin webmaster@localhost
DocumentRoot "F:/dev/CodeIgniter_1.7.2/htdocs_app2"
ServerName linestolinger.localhost
DirectoryIndex index.php index.html index.htm index.shtml
<Directory "F:/dev/CodeIgniter_1.7.2/htdocs_app2">
    Options Indexes
    AllowOverride All
    Order allow,deny
    Allow from all
</Directory>
</VirtualHost> 

Have entered the host names in the hosts file too.
(127.0.0.1 mybits.localhost
127.0.0.1 linestolinger.localhost)

But only the base url works(like http://mybits.localhost , for which the default controller welcome.php gets called). But when I access urls with any controller segment,it doesn’t work, throws a 404 error. Even http://mybits.localhost/welcome doesn’t work.

Any idea what could be wrong?.