Simple domain home directory question...

I have a WP install for a domain in home/hw/public_html... domain home directory is /home/

That works fine. I just added a new domain, and it's folder was created here: /public_html/domain.com/ and I installed WP in this folder.

Question 1: What do I point the domain home directory to? WP isn't showing up when I navigate to domain. This happened with first domain and I changed domain home directory to /home/ and it worked.

Question 2: If I wanted to organize my domain folders like this:

/public_html/domain1.com/
/public_html/domain2.com/

Could I just move all of domain1's WP files/folders to a new folder in public_html called domain1.com? Would it mess up WP on that domain?

Well I got the first Q... changed domain home directory to /home/hw/domain.com/ and it worked.

Any ideas?