To create a SharePoint site as a subsite of an existing site
Display the parent site. On the Site Actions menu, click Create.
On the Create page, in the Web Pages list, click Sites and Workspaces.
On the New SharePoint Site page, in the Title and Description area, enter the site name in the Title box and an optional description in the Description box.
In the Web Site Address area, in the URL name box, type the site-specific designator that will be appended to the end of the parent site URL.
In the Template Selection area, click each tab to see the available site and workspace templates. Then on the tab that has the template you want to use, click the template.
In the Permissions, Navigation ...