All sub-domain accounts are setup through Domain Manager in your Client Control Panel.
From your control panel login screen, select "Domain Manager" from the drop-down menu and log-in.
You will need to specify both the name for your sub-domain and the Document Root you wish to use. Your base path is already shown, so all you simply need to add is the directory name that your sub-domain should point to. This is would then become the Document Root for your new sub-domain.
Once you have submitted this information, the new sub-domain will be created and your webserver will be restarted within 10 minutes.