Make is easier to test/preview a website when you have multiple sites on an IP.
The "preview" function doesn't work with Wordpress. Setting up a subdomain is complicated. Modifying localhost file is a ridiculous solution.
This feature is already implemented in the upcoming Plesk 12.1 release. We encourage you to check the implementation in one of upcoming Plesk previews and let us know what you think.
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Isak Botma commented
Also, What DNS settings do i need to change if i create a webspace for an external domain to be pointed only to the newly created webspace with no mail support? Im a bit confused with this as do i also need to change the full url in WordPress?
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Stéphan S commented
The problem here is not Plesk's fault.
The problem is that WordPress uses the hostname from the HTTP request to further process the request.This cannot be fixed by Parallels.
I believe the following might help here, although not user friendly.
http://codex.wordpress.org/Changing_The_Site_URLYou should address this issue at the WordPress forums.
http://wordpress.org/support/