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2. The way to do it depends on the user interface on the server.
3. There are differring opinions about the advantages. Personally I think that the URLs get nicer and it is more easy to distinguish a subdomain as a separat website if that is what you want to do. And possibly you gain an advantage in search engines.
I'm building pages in FP and uploading to a server at godaddy, so I don't guess I have access to the user interface of the server.
"Personally I think that the URLs get nicer"
Is there a word missing here? That sentence does't make sense to me. The URLs get nicer what?
"possibly you gain an advantage in search engines."
What would be the reason for the advantage? what kind of advantage? You mean you would may get more pages indexed, or what?