Finally working!
Now that the server is recognizing my htaccess files, I have been able to test some rewrite rules. The code below seems to be working well and sends any URL containing a subdomain to my members dir plus keeps the subdomain as the user clicks through the files in that dir.
htaccess in the root dir:
RewriteEngine on
RewriteCond %{HTTP_HOST} !^www\.example\.com [NC]
RewriteCond %{HTTP_HOST} ([^.]+)\.example\.com [NC]
RewriteRule ^(.*)$ members/$1 [L]
However, this alone causes a 500 error unless there is a second htaccess in the members dir. I get that, but the funny thing is that the members htaccess file only requires one short line to work.
htaccess in the members dir:
RewriteRule ^(.*)$ [L]
Just this and nothing else. Seems additional info is ignored, yet it won't work without this bit. Does this make sense to anyone?