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Not going to be any effect of sub-domains on server performance, unless they are set up to go to a different server than the rest of the site.
Not sure what thebusinessman is saying!
Usability issues:
some people use the URL and some guesswork to navigate your site, they try file names and directory names, so using a subdomain will throw them...
...but assuming you have good navigation in place already, then it doesn't matter really!
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