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If you use a sub directory you can also add this section of the site to directory sites, where as if you use a folder / you cannot as many directories onyl accept submissions from top level url's
so if you have arm.mysite.com you can add this to web directories as it is a top level domain but if you use the mysite.com/arm then you cannot add it to many directoires as it will be refused because it is not the top category.
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