CFLOCATION or CFHEADER - google

Hi - I just signed up for a new host, I was under the impression I could easily have multiple domains running off the same ip. My other host (hosting static sites only) was simple, you add as many domains and point them into subdirectories using GUI tools.

'My new host now says it is best to setup another IP'. This will cost me another $50 a month ($45USD). I assume this is expensive in Australia compared to US.

My new host says there is another work around... I must use a CF tag, either: CFLOCATION or CFHEADER. I assume I put these in the Header of a index.cfm file under the root of my ip?

Then in the index.cfm page i should put:

<CFHEADER statuscode="301" statustext="Moved Permanently">
<CFHEADER name="..domain1/" value="wwww.domain1.com">

<CFHEADER statuscode="301" statustext="Moved Permanently">
<CFHEADER name="..domain2/" value="www.domain2.com">

Is this correct, I really have no idea what I am doing!

Also, more importantly, how will this impact SEO issues with each domain? Will google be able to follow this too?

I am open to other alternatives to solve this issue, please suggest.

Thanks