Atlantean a couple idea for you.
1st what you describe is not TOO bad. Look at many malls, this is sort of what they do. They have different folders with different product categories. With some it's almost like separate sites.
But if you want to make separate sites here is the CHEAP and easy way.
Yahoo domains are only 2.99 right now I think. Then get a reseller hosting account here.
http://www.thrillhost.com/ I have one for all my little domains I am gradually trying to build sites for. You can host unlimited domains for 11.95 a month. Can't beat it and GREAT host!
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You GO Joe! I knew once I lit a fire under you, you would take off like a rocket.
Even serious blogging can be FUN! That's why sometimes I add Friday Funnies with Internet marketing jokes and spoofs - even though mine is a biz blog.