BuddyPress.org

Yes, this is possible.

http://lifehacker.com/software/ask-lifehacker/ask-lifehacker-multiple-subdomains-147913.php

Not sure if GoDaddy will allow multiple sub domains on a shared server however. Not that you said you were on a shared server, but that’s usually a safe assumption.

Trent, you’re correct as far as I can tell.