[Denis Kovalkov]

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.
 
It seems that you can offer free web space from your own domain! Isn't that a way to build a fantastic traffic?

[sonya]

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

[Karl]

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]