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It is always best to have your site domain match up with the content of your site. third level domains allow you to get an extra keyword in there. It is also something that is trappable at the level of your webserver to allow you to create false / automated pages to feed the bots based on the third level demanded.
HOWEVER, it is not a good technique for getting sites listed on many link sites, as more and more are automatically declining these sites (no way to know if it is a domain you own or a shared / bartered / free host).
Alex
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