Vhosts forwarding to wrong site

[StupidRalph]

Expected behavior:
To be able to visit http://artsite and have it display the site located in I:/Documents and Settings/Ralph/My Documents/My Sites/artsite/public.

Actual behavior:
Forwards to http://artsite/xampp and displays XAMPP's local site's home page as if I were visiting http://localhost.

Desired:
To achieve expected behavior by either editing hosts and httpd-vhosts.conf. And if possible, to use a PAC file opposed to using the hosts file and also using dynamic virtual hosts opposed to continually editing the httpd-vhosts.conf. This is how I've done it previously just can't get it to work as previous.
It may look something like this:
I:/Documents and Settings/Ralph/My Documents/My Sites/%0/public



hosts

127.0.0.1      localhost

127.0.0.1      localhost:80

127.0.0.1      artsite

httpd-vhosts.conf

<Directory "I:/Documents and Settings/Ralph/My Documents/My Sites">
  Order Deny,Allow
  Allow from all
</Directory>

<VirtualHost *:80>
  DocumentRoot I:/xampplite/htdocs
  ServerName localhost
</VirtualHost>

<VirtualHost *:80>
  DocumentRoot "I:/Documents and Settings/Ralph/My Documents/My Sites/artsite/public"
  ServerName artsite
</VirtualHost>