I'm looking for opinions here, so feel free to give me yours. I'm wondering if subdomain.domain.com or domain.com/subdomain is a better way to set up my website. Basically I will have a website for each town, for 5 towns to start with, but that will grow quite rapidly.

At the moment it is set up so that subdomain.domain.com forwards the user to domain.com/subdomain. From a programming point of view I have found that domain.com/subdomain is easier to work with, but subdomain.domain.com makes it easier for a user to remember and makes it look like it is a stand alone site.

As for search engines, I have no idea which is better...any opinions?

Thanks,
Chris

I believe that it is better Search Engine wise to have it domain.com/subdomain because it looks more physical and i think some search engines don't like subdomains, but i'm not sure.