DotNetNuke supports the concept of portal aliases (http://www.dotnetnuke.com/Resources/Wiki/Page/Portal-alias.aspx) where more than 1 domain name can resolve to a portal so you can point your subdomains to a single portal this way. However tpically subdomains are used to logically seperate site functions and as such you'll want seperate look&feel and functionality - as such you will create new portals. As a child portal takes the form currentdomainname/portalname, it's not valid, and in this case you will create new parent portals. When creating a parent portal you have to ensure that in IIS these domains are already added and so any requests will be routed to the dotnetnuke site itself. As to your licence question you'd be better to ask the vendor but my reading of that is that as long as your urls all point to the one dotnetnuke codebase you're fine.

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OK...I was reading this, and think I might have missed something. Let me give you my scenario, and what I think I need to do, and then ask the question as to what I am missing.

I have a web design site: http://webdesignliberty.com. I want to use a subdomain to create a demo site for one of my clients: http://aftdemo.webdesignliberty.com.

I know I need to create the subdomain...and how to do that. Then, I believe I create a portal for that subdomain in the hosting controls on the main website. I know how to do that.

Do I need to install a DNN application on the subdomain, or will the installation on the main domain suffice?

BTW, my host provider does not permit application installations on the root folder, so the main domain has a folder to hold the database. Will that make a difference in the whole equation?

Thanks for the help.