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This URL will effectively point to the new section of the site (different URL). The reason they want a separate domain name is branding, nothing to do with keywords (although I've pointed out the benefits).
My question is how best to set up this new domain. I don't want to upset the search engines (esp Google) and I know there are different ways of doing it.
Now I'm not a webmaster and I'm not a techie so if someone can explain in simple terms, the options available, I'd be very glad.
Thanks in advance
If the new domain name contains keywords, building this site using absolute addressing (as in "http://www.mysite.com/index.html") instead of relative addressing (as in "./index.html") may help you acquire more prominent listings on some SEs.