It sounds like you have DNS management issues.
Are you using GoDaddy's DNS? Or another name server?
If you look at your settings, you'll see that you have a host entry for www that resolves to the IP address, but not the blank host name (I think GoDaddy lists it as "@").
For your subdomain, you may have to use their setup that has you forward your subdomain to another directory, like "blah" forwards to
www.website/blah.
I hope that helps a little...