Not totally sure, so many ways to go wrong in Magento, but here’s what I always did wrong when my stores weren’t showing up. Maybe it’ll do the trick for you too.
You made store1 and store2 as storeviews in the ADMIN> System> Manage Stores? Check that store1’s storeview code is “store1”. Store2’s storeview code must be “store2”.
In CMS> Manage Pages, create a home page each for store1 and store2. Assign them to their respective store views when you save the pages.
In ADMIN> System > Configuration. For the “Default Config”, click the “Web” tab on the left. Set “Add Store Code to Urls” to yes. Make sure the base URL is http://www.domain.com/
In Admin> System> Configuration, select store1 as the “Current Scope Configuration”. Click the “Web” tab on the left and assign store1 its home page.
In Admin> System> Configuration, select store2 as the “Current Scope Configuration”. Click the “Web” tab on the left and assign store2 its home page.
Save as you go, maybe refresh cache just for kicks. Now, when you go to the frontend and go to http://www.domain.com/store1 you _should_ see your store1 CMS page and http://www.domain.com/store2, you should see the other CMS page.
Your mileage may vary. ‘luck!