Macguru - 12:27 pm on Aug 1, 2001 (gmt 0)

From what I experienced with Google, the answer is yes. But links from other sites to the main domain will not count for the subs. This is a inconvenient of splitting content of some domain. But the combined benefits of having those subs crossed linked, listed in major directories and having a good keyword for a sub domain increased overall traffic for me.