Ok, I reboot and restarted everything and it seems to work fine now. So I am going to make this resolved.
The guys at HostGator got this working for me somehow. So it all works now.
Thank you very much for responding. I have set up wildcard subdomains I believe properly now and do not get the 404 error any more.
However, now when trying to access the new site I get a “Oops! Google Chrome could not find subtest.mangomango.com”
Do you have any idea why?