From search engine journal:
"For blogs, I prefer a subfolder (http://www.seomoz.org/blog/) because the link juice which is sent to that blog is going to be naturally distributed to that main domain, and other subfolders under the domain.
Futhermore, the forum/blog will default logo, home page and other links back to the subfolder. If you set this up with a subdomain, by default, the links in the forum/blog itself will all point back to the subdomain. So, with a subfolder, both the inbound and internal linking structure favor the entire site.
With a subdomain, the forum or blog will be listed as a separate entity in the Google search results, which is good for owning the results and one’s reputation management. However, Google and other engines will generally not list more than two of these subdomains in the search results, unless those subdomains can prove to Google that they are independent and relevant entities."
If you don't know htaccess, redirecting the site to and from the subdomain can be a nightmare. If not setup correctly, your subdomain can cause you all types of duplication and strange URL complications.
Hope this helps!