Im a bit at a loss as to what difference using the DNS record with the www. prefix is, could someone kindly explain the differences/caveats between using the prefix and not using it, or if I use both what sort of complications should I expect to run into please?
ok, when you say "use" do you mean actively promote both with link building and such, or use both DNS records?
The complications you could face using both is you do not reditect one to another is: 1. Duplicated content penalty by Google. 2. SEO difficulties with off-page seo, such as link building. The domains with and without "www" is treated as two different domain names. You should always pick one of them and redirect the other to it. Having a www can look more professional, but it is more common that people link to your site without the www. So it's all up to you. But if you redirect one of them to the other then the linkjuice from all links to your site will be transferred to only one of them, so there is no need to worry about that.
E; ...in IIS7: If I choose my main URL without prefix, could I add another "empty" website with the bind of www. and setup a 301 to the non-prefix site...this will work and is good practice?
man it's like 1990s....... don't use it, unless you're aiming at a demographic of old people, but even then they're likely to die off in the next few years and then where will ya be!? huh? Yep, uh-huh, I hear what ya sayin, and that's exactly right.... You're entirely better off not using the, man I don't even wanna type it, just got the y2k bug thinking about pushing it 3 times......*shudders....