does apache handle subdomains?

[01satkins]

are subdomains handled by apache or are they handles by the dns server?

i have got the hang of mapping paths outside the htdocs folders as folders
e.g. c:/stuff becoming www.me.com/stuff

but i was wondering if subdomains are handled by apache as well and if so how do i set it up?

[Wiedmann]

are subdomains handled by apache or are they handles by the dns server?

Both. The dns-server must know the ip for the subdomain. And Apache must know which virtualhost is the correct one for the given dns name in the request.