Ok, progress slowly but surely. It turned out I had a CNAME entry in my dns that was throwing off my A zone entries. Now if I ping anything.mysite.com I get a reply. So the DNS issue is now working.
Thanks for bareing with me everyone and for all your help. My new issue is as follows:
I have an alias set up in my apache config file that looks like this:
Alias *.mysite.com "C:/Program Files/Apache Group/Apache2/htdocs/hydra/index.php"
Now my assumption is that if I type in mcslug.mysite.com it will ACTUALLY be forwarded to the index file referenced above, I can then code php into that page that will handle the url variables and do the work I want.
My problem is it doesn't re-direct to that page, it goes directly to the default apache welcome page. I think it's just jumping right over that line, (or perhaps I just have it typed wrong) I've also been reading up on virtualhosts (since etully recommended it) but I don't understand how that would help me? I tried putting this in for my virtualhost:
<VirtualHost 127.0.0.1>
DocumentRoot "C:/Program Files/Apache Group/Apache2/htdocs/mysite"
ServerName *.mysite.com
</VirtualHost>
but my understanding is that virtual hosts are more for subdomains or running second domains on the same box.
As for the dns issues and changing companies, none of this is live right now, it's all being done in house in a development environment, so I can call it what I want where I want using a local ip and it works just fine.