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how to set Subdomain on different host/website ?

Sharad- I'm trying to host a subdomain for my site with a different hosting company and I'm running into issues on how to set it up.
Here are the specifics: - Domain is registered with GoDaddy. - Nameservers are pointing to DiscountASP.net where ASP.NET app has been happily running for couple of years. - Would like blog.mydomain.com to point to my account with DreamHost.com to take advantage of their LAMP stack.
I have added blog.mydomain.com to DreamHost (after adding mydomain.com) via their control panel. I thought I would be able to add a subdomain entry on GoDaddy to point to DreamHost, but all they allow is blog.mydomain.com = new url.
In theory I could just take our .biz or .net domain and host it on DreamHost but was hoping I could do it all with a subdomain.
So, to summarize I'd like to know if what I want to do is feasible and if so, how do I go about it (given the constraints of GoDaddy, DiscountASP, & DreamHost).

Best Answers-
sub domain is part of the domain, it's like subletting a room of an apartment. A records has to be setup on the dns for the domain e.g
mydomain.com has IP 123.456.789.999 and hosted with Godaddy. Now to get the sub domain
of which the site is actually on another server then
login to Godaddy and add an a record anothersite.mydomain.com and point the IP to the other server
And that's it.
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