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Getting Started manual says I can put my files in /Applications/XAMPP/htdocs/ folder and in /Sites/ folder, but when I put files in /Sites folder it gives me this error:

Server error!

The server encountered an internal error and was unable to complete your request. Either the server is overloaded or there was an error in a CGI script.

If you think this is a server error, please contact the webmaster.
Error 500
localhost
Wed Mar 17 11:29:01 2010
Apache/2.2.14 (Unix) DAV/2 mod_ssl/2.2.14 OpenSSL/0.9.8l PHP/5.3.1 mod_perl/2.0.4 Perl/v5.10.1 

Is there something that needs to be changed?

Also, when I try to restart XAMPP via Terminal I get this message:

XAMPP: Starting ProFTPD.../Applications/XAMPP/xamppfiles/xampp: line 184: /Applications/XAMPP/xamppfiles//var/proftpd/start.err: No such file or directory
fail.
Contents of "/Applications/XAMPP/xamppfiles//var/proftpd/start.err":
cat: /Applications/XAMPP/xamppfiles//var/proftpd/start.err: No such file or directory

Does this have something to do with the installation?

Thanks