First things first, a sub-domain is a web site that is addressed like this:
photos.mysite.com or blog.mysite.com
You are allowed to host unlimited sub-domains as long as you are not charging for hosting on the sub-domain. Letting your friend have some space is not the only thing a sub-domain is used for though. It can be a good way of breaking up your web site some as well. Also if you have another interest you'd like to host a web site about, this also works.
Another thing that we will not allow you to do is point a domain name at a sub-domain. Hope this helps any that might be confused on the process!
What's Your Policy On Sub-domains?
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