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*Sigh*, I'll actually try to answer your question :P. Guys, let's actually read the question before we start answering!
In short, no, they are not the same. A subdomain creates something like yahoo.google.com while an add-on domain can be google.com.
If you want to add another domain to your hosting account, like Chris explained, you are in search of an add-on domain. For example, let's say you own google.com. You want to add yahoo.com ... but want it to have different content. Then you add yahoo.com as an add-on domain. Notice how it asks you to choose a dirctory? Let's say you choose to set /yahoo/ . So, when google.com is loaded, you get your accounts "root" folder. But, when yahoo.com is laoded, you really get google.com/yahoo (that's where the content is). The URL, however, doesn't show that.
A subdomain basicly does the same thing, but with a different URL. You still set a directory from which the content will be drawn, however the URL will look like this :
yahoo.google.com. So basicly, it's just a little divider.
Subdomains can be created from any existing domain, and nothing else needs to be purchased. However, in order to have an add-on domain, you'll need to purchase another domain name (assuming you don't already own one).
So:
subdomain = yahoo.google.com
add-on domain = yahoo.com
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