Netcommr, I just did some playing with this and I didn't have any problems letting in xyz.domain.com and excluding everything else from domain.com. Maybe you should check the IPs you are requesting access from and make sure they are resolving the way you mapped out?
Thanks. Tried changing IPs, using 2 different IPs and Deny by IP...no go. Something is just weird. Tried in htaccess and httpd.conf. Just has me real 'bugged' when I can't find something this simple...
I give up for the night.
Did you have the directive within a VirtualHost or a Global decl.?