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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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INSTALL
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STEP 1: Patch .htaccess (Apache only. For lighttpd, see below)
 cd /path/to/drupal/
 patch < /path/to/subdomain/module/patches/htaccess.patch

STEP 2: Patch settings.php
 cd /path/to/drupal/sites/default/
 patch < /path/to/subdomain/module/patches/settings.php.patch

STEP 3: Edit settings.php & set $cookie_domain to your site domain. e.g.:
 $cookie_domain = "example.com";

STEP 4: Enable wildcard DNS on your DNS hosting provider (e.g. *.example.com)

STEP 5: Configure wildcard virtual hosts. For apache or lighttpd,
 see below. For other web servers, consult their documentation.

STEP 6: Enable Subdomain settings (URL aliases -> Subdomain settings
 select mode (og, node author, taxonomy vocabulary)
 and additional settings as desired

STEP 7: Configure Pathauto (URL aliases -> Automated alias 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>