Earlier this week Google released a new set of Blogging Best Practices in their Creating a Google-friendly site section of Webmaster help.
The document starts out with Google reiterating their pro-blog feelings:
If you have a website but don’t have a blog, consider creating one: A blog is a great way to connect with people who share your interests, or to publicize your site or product. Blogs are easy to create and update, and rich, useful, and original blog content will encourage readers to come back to your site. Here are some tips for making the most of your blog
Then proceeds to separate out their document into three sections: Create great content, Make sure readers and crawlers can find your content and Your blog and Webmaster Tools.
Create Great Content:
Write Well and Often.
Follow the webmaster guidelines.
Categorize your posts.
If necessary, limit comment spam.
Check our tips for affiliate sites.
Make sure readers and crawlers can find your content:
Create descriptive titles for each of your posts.
Connect with your online community.
Publish a feed of your content.
Your blog and Webmaster Tools:
Add your blog to your Webmaster Tools account.
Verify your blog.
Submit a Sitemap.
If you have the time you can read the full documentation here.