I created another subdomain to test your theory “are you able to access the subdomain before you add the wordpress files” and, no… I couldn’t access it with just the standard files added on the folder creation.
http://jamesandnoland.dazium.com/
Another test… I was able to get the WP installed in a subfolder under their main domain. It found the database. I changed the appropriate index.php and htaccess file.
I can login:
http://www.slyjamesfirm.com/jandn/wp-login.php
But, I get an error on the site:
http://www.slyjamesfirm.com/jandn/
Yes, cpanel… and confirmed it was added to the domain manager (this is at bluehost)