It has been a while since I've been thinking over this feature that some websites are implementing and it looks to be very successful.
Websites like tumblr.com, blogger.com, wordpress.com allow users to register new sub-domain names from within the website by using a simple HTML/PHP form. With my current knowledge of PHP I couldn't figure out myself how this is done. I've read some posts on this and still can't build a clear idea about this.
So, how do I create a script that allows users to register their own sub-domains on my website (www.username.mydomain.com) and more than that, how do I allow them to use a different website template (as wordpress.com does). Is this possible to be done on a shared server or a dedicated server is needed?