PR for subdomains?

I know PR gets knocked off by 1 point at a time for every subdirectory you go further into the site. Is the case the same for subdomains or are they treated as completely different sites?

Not actually - thi isn't a directory thing, but a link thing.

You can have domain.com/directory1/directory2/directory3/page.html and a PR7 mainpage and the page.html at PR7.

It's the number of links between pages that drops not directories.

In the case of sub-domains - you gain PageRank as links between sub-domains act much like external links. The trade-off is "much smaller" sites with less breadth.

A 5 page site with 4 pages in 4 directories is a five page site, and the potential of #1, #2 rank listings (the second indented) on various phrases.

In a sub-domain scenerio - this would likened to 5 web sites each with one page. Not alot of shared internal relevancy, no amount of content, no internal links what-so-ever... and little hope.

I realize this "small" site version is not what you are discussing... just be sure you are considering "sub-domains for the right reasons.

So are you suggesting that people should in a logical and legitimate way create subdomains so as to increase the inbound links?