Do subdomains gain power from parent?

[bwnbwn]

Back about 6-12 months ago we lanched a subdomain on a fairly well ranking website and noticed that the subdomain instantly ranked well for quite a few terms. Has anyone else noticed this? Is this still the case? Thanks.

[tedster]

I've seen this happen, but only for the subomain's index page -- not inner pages.

I've also seen another phenomenon that shows how a subdomain is not treated "exactly" like an independent domain on Google. One of my clients has a Home Page link to one of their subdomains. That subdomain shows up as one of their Google SiteLinks [webmasterworld.com].