Warning: mkdir() [function.mkdir]: open_basedir restriction in effect.

[eluser]TheFuzzy0ne[/eluser]
Sure. What you have should work anyway, although simply replacing what you have, with this should work too.

Code:

<Directory "/var/www/vhosts">
    AllowOverride All
    Options SymLinksIfOwnerMatch
    Order allow,deny
    Allow from all
    php_admin_flag safe_mode off
    
    <IfModule mod_php4.c>
        php_admin_flag engine off
    </IfModule>
    <IfModule mod_php5.c>
        php_admin_flag engine off
    </IfModule>
</Directory>

Once you're done, you'll need to reload Apache. Assuming you're in an account with administrative privileges, the following should do that nicely.

Code:

/etc/init.d/apache2 force-reload

EDIT: Glad you got it sorted.