I'm hoping heyguy had it right since there was no response contradicting him. After looking at some other comments, here is what I have concluded.
Like Dan also said, you can sign up a client, with their name, but you can pay LunarPages and charge them a "fee". This should work. However, there is a question of, why do this? Not understanding how everything works is one reason. For example, thinking you have to pay a large amount of money when one really doesn't want to get into the business of reselling, but only wants to set up clients.
Now, I think I understand a little more. There is the page,
http://www.lunarpages.com/desc/costreseller.htm, which says "purchased accounts", and since it is on the reseller account page, it
seems to say it only costs $7.95/mo for
one reseller account. Then you can resell it to as many people as you want and as long as they fit into
one account, you are only charged $7.95. (LP may wish to change some wording about "accounts" there, or explain it as each resold hosting account)
This situation is what I think Randy was trying to prevent. Each person/company must pay the $7.95. As long as LP is getting that for each hosting account, they should be ok. One "account" could have multiple names, as long as it's the same company (not yours reselling to others).
However, this thread,
http://www.lunarforums.com/index.php/topic,38882.0.html, probably clears everything up good enough. You are only charged the standard fee for each client. If you have enough clients, your costs become less, but you could keep on charging your clients the same amount.
$7.95 to sign up as the client, or $7.95 to sign up as a reseller. So, I see no reason NOT to use the reseller account idea. Then you can be in control of adding/deleting accounts and maybe some other options and advantages. AND you have 3 free domains for yourself or special clients. (I'm a little concerned how much harder this is, but do see a tutorial so probably not a big deal) One thing I notice different is 1GB of space for the reseller verses 350GB. I don't know if this is 1GB split between all accounts, or each hosted account gets 1GB.
When I think of the word "reseller", I think of someone selling 1000s of accounts, but not really knowing nor caring much about programming. Which this could allow, given enough space available. But, it's not something I would have any interest in doing. However, if it were called something like a "developer" account, I think people like Dan and myself would think it may meet our needs.
Am I understanding "reseller" right?
If so, now that I've allready set an account up, is there a good way to sign up for a reseller account and put that account under it - at least when it comes up for renewal?