Clone my site for paid users. Any Ideas?

Ok I'm looking for a way to clone my site for anyone who wishes to pay for it.

It would be something like this:

User signs up and uses paypal to send payment after payment they would get a screen with a form field like below.

Enter young user name below:

http://mysite.com/[Enter User Name Here]

[Submit button]

Now I have two Ideas of how it would be implemented after this:

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Idea #1

I would like to automatically clone the site and create a subdomain.mysite.com URL

Now all menus would be
Home = username.mysite.com/home | contact= username.mysite.com/contact ...

Idea #2

They could sign up and get a mysite.com/username and the username would persist on all internal links so all menu items would be as follows.

Home = http://mysite.com/username/home | contact= http://mysite.com/username/contact ...

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I think idea #2 is cleaner but I'm still not sure how to do something like this.

I'm still building my site http://www.sevenhealthybenefits.com but once it is finished I would like to implement something like this.

Any help would be appreciated.

Cheers,

Latte/