Offer free webspace/subdomain from your own site

Well, how about just start running your own web community and offer free web space. Looks like guys from http://www.excelland.com working in the right direction.
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It seems that you can offer free web space from your own domain! Isn't that a way to build a fantastic traffic?

Regarding this, how DO you offer free subdomains? Is it something that must go through the webhost?

Regarding the free subdomain.
Unless you want to write something that adds them into the DNS server, you could have your webhost enable Wildcarding and use the script I wrote(http://www.digitalnarcotics.com/code) called php-redirection. It redirects the user based on what *.yourdomain.com they came on.

As for webhosting..?
Karl.[DigitalNarcotics.com]

I am new to this but I think that on Linux/ Apache web server one can use only one IP address and domain can be directed to that IP address. With this cost of only IP has to be given to suppier of Dedicated server. Which will reduce cost per domain drastically. If one goes for dedicated server cost per Mb reduces drastically