Subdomain vs subdirectory

Subdomain and subdirectory,which is better?

[newsphinx]

I want to move some content of my site,www.domain.com,to subdomain.domain.com or www.domain.com/subdomain/, but i'm not sure which is better. I mean does it affect my site,which do little harm to www.domain.coom. And if subdomain.domain.com or www.domain.com/subdomain/ on different host(different ip)?

Any response will be appreciated!

[MrSpeed]

I have done it both ways and it doesn't seem to matter from a SEO standpoint.

I did have a situation where google crawled me as
www.domain.com/subdomain/ instead of subdomain.domain.com I imagine there's a mod_rewrite to prevent things like this.

Personally I am going to use www.domain.com/subdomain/ in the future. It's less work to set up if you change servers.

[Nikke]

Pick a philosophy and stick with it.

I usually like to keep it logical, so for the largest site I handle, I have desided to always go subdomain when we are featuring new areas.

So, the site that is about widgets will have dubdirectoriies like
widgets.com/blue, widgets.com/red, widgets.com/golden

But, subdomains like
stainremoval.widgets.com and openers.widgets.com