a. I didn’t include anything between <> tags.. that’s just the partial bit of the config file that’s visible from that section of Virtualmin. If you edit the config file manually, of course, you’ll have to find the right place to put it.

b and c. Yes — in fact, another prerequisite is to have installed the Virtualmin packages for Apache, or have a custom build that changes the docroot (Search the manual for “docroot”). The default version of suEXEC only executes things under /var/www for security purposes. Do you see anything in the suexec log file?

Just wanted to let you know that:
a) I think your wordpress ate a part of the apache config you have there (everything between greater-than and lesser-than tags)
b) maybe you’d like to point out the (obvious) prerequisites of having to install libapache2-mod-fcgid and php5-cgi
c) this isn’t working for me – i only get 404 everywhere i go. and my /var/log/apache2/error_log says: “script ‘/var/www/php.php’ not found or unable to stat”, but i have NO idea where the ‘/var/www’ is coming from.