Is it possible to host multiple websites on the same hosting account?

I have heard that you can register domains using a third party and point them to (your) nameservers and then they would redirect to a sub domain on the hosting account, is this how it works?

Is this just as reliable as having dedicated hosting for each web site?

Thanks!

Most definately!

Linux (No Control Panel)
http://httpd.apache.org/docs/1.3/vhosts/

Windows (No Control Panel)
http://www.microsoft.com/technet/prodtechn...2.mspx?mfr=true

Plesk, cPanel, and Helm will also allow you to achieve the same goal using a UI.