Thanks everybody,
So, basically what I'm getting from this is that a subdomain is created by a virtual host of some kind, which means you can do something like this:
<VirtualHost http://sub.mydomain.com>
ServerName
http://domain.com
DocumentRoot /path/to/your/document_root
ServerAlias sub.domain.com
</VirtualHost>
And then some magic happens behind the scenes to create a subdomain? Is that how it works? I tried temporarily creating a subdomain, just for kicks, but I didn't see an .htaccess file involved, so I have a feeling that means I'm missing something.
Thanks,
Lydia