Why does running one apache/mod_perl server per developer seem like overkill? Trying to sort out the issues involved with running all the modules under one server, particularly multiple @INC paths required for different module versions, is extremely frustrating. And the developers will soon be at each other's throats since they'll have to restart the server all the time, at different times. Since you're in development you can keep the number of servers run per developer very low (2-3) so you shouldn't have resource issues.
It might also be useful (depending on who your users are) to have a single set of lightweight Apache + mod_proxy servers sitting in front of the development servers. Then you can do some fun tricks with mod_rewrite so that a request for http://dev.myco.com/lachoy/ gets proxied (or even just redirected) back to my server running at whatever port is allocated to me. The mod_perl guide has oodles of info on this sort of setup. (A nice side-effect of this is that ordinary users can stop/restart servers running on port > 1024 as often as they like.)
Chris
M-x auto-bs-mode