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Hosting sub domain based email boxes in Exchange 2007


I have email boxes configured on Exchange 2007 with domain I want to configure sub domain based mail boxes for my subsidiaries. Ie,, etc.
Can I configure alias mail boxes in Exchange and it will work? Also, what changes do I need in my DNS (A record, MX record etc) to transact emails from outside.
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Glen Knight
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By alias mail box, I meant that adding the user to the domain in AD as xyz, his default ID becomes Is it ok to create an alias mail Id as and make that as default SMTP ID?
Absolutely as long as you have added the accepted domain and MX record as per my first post.