After doing some searching and reading, I set up a subdomain on my rackshack server in the following way:

1) Create a Virtual site called subdomain.domain.com

Host Name was called "subdomain" and Domain Name was "domain.com"

IP Address was one of the IP addresses on my server. I left the Web Server and Email Server Aliases as blank and enabled CGI/PHP on it

2) I went into DNS settings and added an A record for the subdomain pointing to the IP address specified while setting up the Virtual Site for the sub domain

Saved changes on the DNS setting

Now, if I type http://subdomain.domain.com in the web browser, I automatically get forwarded to http://www.domain.com

Am I missing something? Help would be greatly appreciated

Thanks!
Abbas

Looks right to me.