1. go to %appdata% (or wherever it's located for your OS)
2. make a copy of bitcoin folder, and rename it something like "bitcoin2"
3. put this in bitcoin.conf (create if it doesn't exist).
%appdata%\bitcoin:
rpcpassword=mypassword1
%appdata%\bitcoin2
rpcpassword=mypassword2
port=8335
rpcport=8334
5. start bitcoind.exe
6. bitcoind.exe -datadir=%appdata%\bitcoin2
congratulations. now you have 2 servers running. rpc port for server 1 is 8332, server 2 is 8334
Thanks, incredibly detailed and you all were very patient.