With my knowledge of VPS hosting, they'll essentially produce a fresh OS installation thus making you the main. Once done this, I possibly could easily create multiple user accounts to allow other customers login towards the VPS to keep their data right ? Am I missing something fundamental or essentially wrong.

My requirement is:-

Organize a hack for 50 student groups ( a lot of three ), allow them to do the introduction of hacks on WAMP or Light. Once they really have to demo, all of the hacks have to be located on the public webserver. So, things i thought was basically might get a real server, I possibly could allow them to access their public_html dir's by creating new makes up about all of them, rather than me by hand moving their hacks. Is VPS is the proper way to solve this issue ?

An VPS can be used being an real server, you've root permission and may do anything you like. The core problem of the requirement is how you can configuration home windows+wamp or linux/light, not using vps or real server or any other hosting.

For me, with 50 accounts, it's very difficult to configure, regardless of home windows or linux. And also you need only a sever to operate these PHP sites, no developement server.(Students can build their programs by themselves computer)

A vps(or real server) with user interface for example CPanel or DirectAdmin fits your needs. The panel will require proper care of manage gourp of account, have the ability to create FTP accounts, world wide web path, even email.

You will find many vps provider can offer vps with CPanel or Directadmin.