Subdomains, Routing, and Subdirectory Controllers

For reference, this question is similar to "Subdomains, Session Data, & Routing" posted Oct. 31, 2006. Link:

http://groups.google.com/group/rubyonrails-talk/browse_thread/thread/d3c5072c3588a1e0/f87d0fdfded31650

Note: The route in the example code should read:

sub.connect ':target/:action/:id', :controller => "grouped/:target"