Subdomain vs /Directory

Which format is valued higher at SEs

[cyberair]

I am creating an information database with tons of content. Would it be wiser, for search engine optimiztation purposes, to create [category.widgets.com...] or [widgets.com...]

I thought Category would get more value if it was the subdomain. However, I don't know if since G treats it as a separate website, that I am spreading PR too much.

[jdMorgan]

PR is assigned by page, not by site. As such, there's not likely to be much difference between subdomain and subdirectory approaches. Do whichever makes the most sense from a user standpoint. If the categories are *not* closely-related, then subdomains make sense. However, subdirectories are often much easier to manage.

IMO, Subdomains make sense for big companies that offer multiple services -- Think shopping.yahoo.com, search.yahoo.com, etc. For smaller Web properties, you run the risk of diluting your branding if you're not already big and well-known like yahoo.

Jim