Hi
Basically I bought a domain through a (cheap!) domain company and I want this domain to point to a folder on the server.
The story
I originally bought www.domain.com along with hosting
A few months down the line I bought www.domain2.com
I want www.domain2.com to point ------> to www.domain.com/folder
How do I do this? can it be done through DNS, Im quite new to this!
Help!
for dns, you want to add a cname for www.domain2.com that points to www.domain.com (or add a identical A value) and do the same with domain2.com (without the www)
Next, on your website, You need to allow it to answer for domain2.com but I can not give you much help as this will change depending on what host you use as nearly everyone has a different way to do things (unless using the same panels!)
Check on the hosters specification if it says how many domains you can host on the account, if it only says 1, they will most likely block it, however if you are having trouble and it says more than one, email them and they should help.
Also if they won't help you and still having problems, you can use a free service such as www.everydns.net as your nameserver / dns provider and get them to forward all traffic (Can't remember if it is redirection or through an iframe) to www.domain1.com
There are two distinct tasks you need to perform.
I'm going to suggest that you move this question to serverfault.com, as these are system administration issues and can be more easily addressed there. In order to get it all set up, you'll probably have to include some information about what webserver you run and how you manage it's configuration.
Most registrars, such as Godaddy, have a domain forwarding option. This is the quickest way as it does not require any DNS changes on your server.
They have a help article at http://help.godaddy.com/article/422