Redirect Addresses to localhost by Pattern on Mac OS X
The best solution I've been able to find is DNSMasq.
Justin Carmony's blog post helped me set it up. His original question was more about why .local was so slow after upgrading OSX or something like that, but the solution was the same: DNSMasq.
http://www.justincarmony.com/blog/2011/07/27/mac-os-x-lion-etc-hosts-bugs-and-dns-resolution/
Now, basically all *.cam address go to my local IP. I have it set up so all I have to do is create a folder, list test.cam and I'm off and running with a full LAMP stack.