See:

http://lifehacker.com/software/feature/host-your-domain-with-free-apps-331865.php

Dig comments:

expert01:

Overall decent article. For hosting a domain on your own system, I would recommend Google Apps for email, EveryDNS.net to direct your domain to your static/dynamic IP address, and an Apache or lighttpd server with PHP and MySQL.

lighttpd / Apache Mini: http://portableapps.com/node/10305

WAMPServer: http://www.wampserver.com/en/download.php

XAMPP: http://www.apachefriends.org/en/index.html

PHPDev: http://www.firepages.com.au/

AppServ: http://www.appservnetwork.com/

FoxServ: http://www.foxserv.net/

PHPTriad: http://sourceforge.net/projects/phptriad

I would recommend installing it by downloading each component separately or using the first link, as the packages (in my experience) are too cumbersome.

freudianslipper

for OSX

MAMP: http://www.mamp.info/en/index.php

fac3less

Be very careful about allowing PHP on your system without a proper configuration like open_basedir -- which even has exploits.

Honestly, opening yourself up to the world is not a good idea unless you know what you're doing.

Having end-users do this is just asking for trouble :/