On shared web hosting, are all subdomains like
bar.example.com always hosted on the same server (same IP address)?
Rather late, but this question came up in the sidebar and the accepted answer is not really correct.
Subdomains, as far as the Internet is concerned, are completely separate from each other.
b.example.com can be hosted on the same server, on a different server, or on a different continent. It's just a question of how the DNS is set up. I have a few cases where the production
www.example.com is at the provider and the
new.example.com runs from the server on my desk.
How a provider sets up the file structure is entirely up to them.
example.com/bar/ is common, as is
If you have VPS (virtual private server) with root access you can set it up any way you feel like, it's just a matter of putting the correct path in the webserver's config file.