Yes, you can run multiple sites from the Magento community. The Magento official blog actually just posted a post about this that you can check out: http://www.magentocommerce.com/blog/comments/from-the-support-team-multi-site-domain-name-setup/
The bottom line is that you need to create a new store in the admin backend. If you are not using the same product catalog for both sites, you will also need to create another βroot categoryβ in the catalog category setting and specify this category as the correct root for the second repository.
Finally, the subdomain problem. Depending on which server settings you use, this can be a difficult part. If you have full control over the server (the best idea, since running Magento on shared hosts is a bit problematic in terms of resources), add vhosts to apache and set the variables MAGE_RUN_CODE and MAGE_RUN_TYPE in the .htaccess environment for your site.
I do not see any easy way to set up a subdomain when creating a site. You will need to write apache to create hosts and modify .htaccess, which will require some non-trivial development to do this from the Magento website.
A more detailed answer is at the other end of this link. Hope this helps.
Thanks Joe
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