WordPress on a subdomain

Hi,

I am looking in to creating another website through WordPress which will have its own blog. As part of this site I have a product which will also require it’s own webpages and blog. I understand from other support forums that you cannot have two blogs on one wordpress site?

So, I am considering setting up a subdomain for this product so that I can contain its own webpages independently from the main domain. So I am wondering if this subdomain can have it’s own seperate wordpress installation, to treat it as it’s own website, and therefore be able to have it’s own blog?

Or would this only be accomplished by setting up a whole new domain for it?

Many thanks in advance,