I guess you mixed a few things up

When creating a new parent portal, DNN Handles everything for you, except for 2 things:

1. proper dns entry
2. IIS host header

so, creating a new virtual dir is not necessary at all, just follow these steps:

1. make sure a proper dns entry exists for the new subdomain
2. make sure the host header of the site that runs your DNN install handles that domainname as well
3. create a new parent portal in DNN using that domain name

if you are creating lots of parent portals all on subdomains of your maindomain, you can skip step 1 and 2 by doing this:

1. create a catch all a record for your domain in your dns
2. let IIS handle every request for that IP address (this requires a unique ip address for your website)

now you can create parentportals on the fly...

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