Seems like you don't fully understand what DNS does...
When you type a URL in to a web browser or any other program, it goes out to a DNS server which in a home-type environment would be a server owned by your ISP or in a corporate environment, the company usually has its own DNS server.
So
Step 1: type in URL
Step 2: it calls up the dns server
Step 3: the dns server sends the computer the ip address setup for that domain
Step 4: the browser now requests the web page from that ip address
Step 5: apache checks to see if the domain name matches any domains set up on the server
Step 6: apache connects the browser to the appropriate virtual host.
So by setting a domain name on the web server, you effectively do absolutely nothing, without a record set up in the DNS server. With that said, you have some options.
The easiest, but possibly least effective, method is to edit the hosts file on whatever devices you know are going to access the web server. The hosts file is essentially a file which overrides the dns server for specific domain names. So right now I'm on a windows machine to edit my hosts file, I would browse to C:\Windows\System32\drivers\etc and open a text file which is called hosts. In there there are lines that look like this:
What that line says is: when someone tries to connect to the domain "localhost" connect them to the ip address 127.0.0.1Code:127.0.0.1 localhost
You can add a bunch of those lines if you want to, so on any computer you could add a line something like this... I'm using 192.168.1.102 as an example IP address for the sheeva.
Now, every time you enter www.ibug.plug into a web browser on the computer whose hosts file you just modified the browser takes you to 192.168.1.102.Code:192.168.1.102 www.ibug.plug
Since Mac OS X likes to dumb things down, there is a GUI manager to do this task with the instructions found here: http://support.apple.com/kb/TA27291
Now I recognize that the place you really want to do this is on your iphone. To do this, the iphone needs to be jailbroken. Once jailbroken, you SSH into it and in either the /etc/ or /private/etc/ directory there is a hosts file. Use whatever text editor exists from the iphone terminal to edit it.
It should also be pretty easy to find on any other device/operating system.

