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I have found one more option to build Digg and Reddit like websites, this time not on PHP but on powerful RubyonRails. The product is GrabTheMic. Now being an RoR product, it has special requirements like having both ruby and rails installed on to your server, which I don't have hence I couldn't test it, but being a Google Sponsored Project, we can assume its good(if not great) 
According to the team of GrabTheMic -
GrabTheMic is a community-driven news platform that provides a simple feedback mechanism through voting. It allows users to submit links to various news / blog articles, and for others to vote and comment on them. It is based on the Ruby on Rails framework, and is licensed under the GPL.
Requirements for GrabTheMic
It is assumed that Ruby 1.8.4, Rails 1.1.4, and SQLite3 are installed on your machine.
And How easy it is to build a Community website using RubyOnRails ? Just 3 steps
1. run 'rake migrate' to build the sqlite3 database
2. Execute './script/server'
3. Visit http://localhost:3000 to start working!
I think if you don't know RubyonRails than GrabTheMic script gives you great reason to give it a try. Install it on your local system and experiment it. You never know, few hacks here and there, and you may become the next Web 2.0 millionaire (Hint: I am looking to introduce Buy me a Beer wordpress plugin, by the way).
Edit - One more thing, if you are looking for some PHP alternatives, than you can check Build your own Digg like website with Akarru and Create your own Del.icio.us Clone posts.
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