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Sub domain vs sub directory

which is better

     
6:48 pm on Aug 23, 2006 (gmt 0)

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I'm curious from from a Google PR standpoint which is better, a sub domain or sub drirectory? Does it make any difference? I've heard that the PR of sub domain on a site is not associated with the PR that the root of the domain has. Is it treated as it's own domain?

sub.site.com

vs.

www.site.com/sub/

9:08 pm on Aug 23, 2006 (gmt 0)

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subdirectory
11:22 pm on Aug 23, 2006 (gmt 0)

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Depends on how popular the main site is.