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OVERVIEW
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The subdomain module joins forces with pathauto to automatically 
place Drupal site content onto subdomains.

Currently, it supports 3 modes:

 OG - place organic groups & content onto subdomains
  EXAMPLE: A group named "Pizza lovers" & content would be located at:
  http://pizza-lowers.example.com

 Node Author - place node author & content onto subdomains
  EXAMPLE: A user named "Sayuko" and her content would be located at:
  http://sayuko.example.com

 Vocabulary - place a vocabulary's terms & associated content onto subdomains
 NOTE: only non-hierarchical vocabularies are supported
  EXAMPLE: A term named "Seattle" & associated content would be located at:
  http://seattle.example.com

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UPGRADING FROM Beta 1
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 STEP 1: reverse previous common.inc patch
  cd /path/to/drupal/includes/
  patch -r /path/to/subdomain/module/patches/OLD_common.inc.patch

 STEP 2: Proceed through INSTALL procedure and
  1) perform steps 1, 3, and 7
  2) double check other steps to make sure you've got them
     squared away as well (you most likely already do)

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UPGRADING FROM ALL BETA and RC candidates
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 EDIT /path/to/drupal/.htaccess, scroll to the bottom and find this
 line:

   RewriteRule ^(.*)$ index.php?q=_%1/$1 [L]

 Replace the underscore (_) with a tilde (~), so that it becomes:

   RewriteRule ^(.*)$ index.php?q=~%1/$1 [L]

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INSTALL
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STEP 1: Patch includes/common.inc
 cd /path/to/drupal/includes/
 patch < /path/to/subdomain/module/patches/common.inc.patch

STEP 2: Patch .htaccess
 cd /path/to/drupal/
 patch < /path/to/subdomain/module/patches/htaccess.patch

STEP 3: Patch settings.php
 cd /path/to/drupal/sites/default/
 patch < /path/to/subdomain/module/patches/settings.php.patch

STEP 4: Edit settings.php & set $cookie_domain to your site domain. e.g.:
 $cookie_domain = "example.com";

STEP 5: Enable wildcard DNS on your DNS hosting provider (e.g. *.example.com)

STEP 6: Configure wildcard virtual hosts. For apache or lighttpd,
 see below. For other web servers, consult their documentation.

STEP 7: IF using subdomain in Node Author mode as well as the usernode module
 You'll need to do 2 things to ensure that subdomains generate correctly:
  1) Update to usernode-5.x-1.4 or later (see  http://drupal.org/node/237012)
  2) Update to pathauto-5.x-2.2 or later (see http://drupal.org/node/225554).

STEP 8: Enable subdomain module and configure its settings:
 select mode (og, node author, taxonomy vocabulary)
 and additional settings as desired

STEP 9: Configure pathauto settings:
 1) Go to "Punctuation Settings" and set "Tilde ~:" to "No action"
 2) Place [subdomain] at the *start* of all paths whose content you
    want placed on a subdomain


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CONFIGURING APACHE
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STEP 1: Edit httpd.conf, enable mod_rewrite and configure
wildcard virtual hosts. An example configuration that you 
can append to your httpd.conf is below. Replace the domain 
name and directory as appropriate, save, and restart apache.

NameVirtualHost *:80
<VirtualHost *:80>
    ServerAdmin webmaster@example.com
    DocumentRoot /var/www/html
    ServerName example.com
    ServerAlias *.example.com

    <Directory "/var/www/html">
      AllowOverride All
    </Directory>
</VirtualHost>


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CONFIGURING LIGHTTPD
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STEP 1: Enable wildcard DNS on your DNS hosting provider
 (e.g. *.example.com)

STEP 2: Edit your lighttpd.conf file, enable the evhost module, 
and append the following, modifying directories as appropriate:

$HTTP["host"] =~ "([^.]+)\.([^.]+)$" {
        evhost.path-pattern = "/var/www/%2.%1/html/"
}

# Apply the following drupal rewrite rules to subdomain URLs
# moving subdomain to the 1st argument in the path
# e.g. bob.example.com news.mysite.net 
$HTTP["host"] =~ "^([^.]+)\.([^.]+)\.([^.]+)$" {
url.rewrite-final = (
  # More than one argument
  "^/([^.?]*)\?(.*)$" => "/index.php?q=_%1/$1&$2",
  # No arguments
  "^/([^.?]*)$" => "/index.php?q=_%1/$1",
 )
}


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CREDITS
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Authored and maintained by Stein Setvik <setvik AT gmail DOT com>