I’m having the same problem – the sharepoint assigned a CNAME record for the “companyweb� some how it is not been registered at the DNS zone. I have tried changing the type of record, security access, created new virtual folder and nothing has worked for me, except by adding the host name at the client computer. If you go under C:/windows/system32/drivers/ect you will see a file call "hosts" that you will be able to edit with notepad by adding the IP address of the server and domain name at the end of the file (192.168.X.X companyweb) – once saved you should be able to reach the site; however that is not the best way to do it. I really don’t know much about CNAME and child site – but the problem is right there.
hope some has a better or the right solution
ASD
I've tried to do as your advise but still can't solve this prob. The "Hosts" file that you said, is that .SAM file format? The contents as show below. I found it at C:\WINDOWS
# Copyright (c) 1998 Microsoft Corp.
#
# This is a sample HOSTS file used by Microsoft TCP/IP stack for Windows98
#
# This file contains the mappings of IP addresses to host names. Each
# entry should be kept on an individual line. The IP address should
# be placed in the first column followed by the corresponding host name.
# The IP address and the host name should be separated by at least one
# space.
#
# Additionally, comments (such as these) may be inserted on individual
# lines or following the machine name denoted by a '#' symbol.
#
# For example:
#
# 102.54.94.97 rhino.acme.com # source server
# 38.25.63.10 x.acme.com # x client host
127.0.0.1 localhost
for you information, I'm using Win 98 SE for client PC. Domain name is DOMAIN & server name is EDP-DEPT. Server IP address is 1.1.1.1. I don't know what else to do, & still need your help...