Originally Posted by falko
You must register your domains with a domain registrar such as GoDaddy. Usually the registrar also runs the nameservers for your domains (although it's possible to run your own nameservers). To create a subdomain, all you have to do is create a DNS record (A or CNAME) on the nameservers.
When you say "create a DNS record (A or CNAME) on the nameservers" do you mean on godaddy's nameservers?