How can I create sub-territories? I have 4 divisions in the us and @ of those divisions have sub-divisions

There is no concept of sub-territories in MapPoint 2002. One workaround would be to have two separate maps - one with the top-level territories and one with the subdivisions - and use them alternately. The other one would be to create a subdivision territory map but break your data into separate datasets for each top-level territory. Then, by using colors creatively (one color or color range per territory), you create the visual impression of having the top-level territories in your map file too.