a.) as a subdomain blog.domain.com or
b.) as a subfolder domain.com/blog
This article i found online throws some insight on the plus & negatives of both and how to overcome the wrong path you migth have adopted.
http://www.seoptimise.com/blog/2008/07/ ... steps.html
I leave it upto you guys to figure out whats the best strategy... so pour in your comments.
