Automatic Subdomain Creation

I would like a website made on my dedicated server that will allow visitors to register with the site and when registering they agree to t.o.s. and automatically have a sub-domain created for their own free site. (similar to [login to view URL]) I would like them to have 3 or 4 templates available for them to use for free. I would like my advertisements to automatically be placed on their site, unless they pay a fee to not have advertisements. With this site I would also like to offer visitors the chance to have upgrades like: 1. Ads removed, 2. Forums add-on, 3. or FTP access to their folder of their sub-domain, for a monthly fee. The dedicated server will have Linux CentOS.