Subdomains and installation

Ok, so I’m about to install a new site and create a number of subdomains (as these will be micro niches within an overall niche) and start uploading a number of articles to each subdomain.

I’d also like to use the wordpress subdomains plugin (so that the main domain can point to all the subdomains) but I believe it only works properly on 2.9.2?

Here’s some questions I’d love some help with if possible thanks.

1/ Is there a specific step by step process I should follow for installing the main domain and then subdomains? (I use hostgator for hosting so I have fantastico deluxe)
2/ Do I need to install wordpress on each subdomain?
3/ Do i need to install my list of plugins and theme on each subdomain or is there an easier way?
4/ Can all subdomains be managed through one dashboard?

Thanks for all your help.

David.