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I am going to be setting up a network of sites using WPMU and the WordPress MU Domain Mapping plugin.

The idea is to install WP on sub.maindomain.com and use that as my network site. I will be mapping to top level domain like:
www.maindomain.com
www.domain2.com
www.domain3.com
and so on.

Is that possible? What are the cons of going in that direction?
Any help will be appreciated!

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Assuming your sub.maindomain.com is on a dedicated IP, you set A records for your mapped domains to that dedicated IP, and you use that plugin, everything should work, in theory. It may require additional settings configuration in your cPanel or Plesk or whatever you use. –  NW Tech Mar 6 '13 at 20:54
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1 Answer

Make sure your webhost gives you the ability to use WildCard DNS. I know some hosts such as Dreamhost don't allow it on their shared hosting plans.

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