How to setup multi site that will use sub domains in the live server/web server like bluehost

[eluser]cotsweb[/eluser]
You should be able to use Cpanel to set up subdomains (I don't use Bluehost but I believe they offer cpanel).

Code:

application_site1 - main site

application_site2.application_site1 - sub site

application_site3.application_site1 - another sub site

The subdomains for application_site2 and application_site3 will point to subdirectories under the main site.
application_site2.application_site1 and application_site1/application_site2 will point to the same place but having the subdomain set up means that vistors will be able to go directly to where you want them.

Hope this helps