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Daiyaan,
It's very simple to have multriple XOOPS systems installed on the same domain using either subdomains or just seperate directories of the root domain.
All you have to do is to upload XOOPS into new directories on your server, and then when you are installing the new XOOPS systems, make sure to change the database prefix, so the various xoops-systems does not use the same tables in the database. (Unless you have dedicated databases for each of your sub-domains)
A typical setup would look like this:
1.st XOOPS installation at root/
2.nd XOOPS installation at root/xoops2_name/
3.rd XOOPS installation at root/xoops3_name/
4.th XOOPS installation at root/xoops4_name/
This will give you any number of individual XOOPS instalations, each to be configures as you wish and no problems with interaction between the installations. This also means that you can have several different versions of XOOPS like this - you don't have to worry about upgrading them all at the same time.
Hope this helps.
Best regards,
Daigoro