From what I understand, subdomains are frowned upon by search engines for the most part and subdirectories are preferred. In addition, working with subdomains can also bring about challenges you don't have with simple subdirectories.
The problem -- I need to have a subdomain for a blog. It just makes sense to have it is this.mysite.com - but the WP install is in the root and uses subdirectories.
What is the best way to accomplish the above? Do I need to install a second instance of WP in the subdirectory? If so, is there any way to use the single WP database install so all the users can be synchronized and shared?