Update!
—> After due diligence, I have discovered the page….
http://codex.wordpress.org/Installing_Multiple_Blogs
….which answers most of my Question#2 above or at least suggests workarounds to get multiple blogs from just one WordPress installation (multiple installations wouldn’t be such a bad thing anyway, just a little messy).
—> Question #1 is still a problem. Can I stick with Mac OSX SERVER 10.3.8 but leapfrog forward to the most recent (but not beta) versions of PHP, MySQL, and WordPress? Rather like a 1960 Ford Falcon sporting a modern satellite-TV dish. Please advise.