I made some blogs with the content dump plug-in. The approach is a little different. Blog articles are not stored in an extra module but as regular content pages in the regular hierarchy. You then use dedicated templates (or a single more complex one) for creating the required display logic with smarty. Content-Dump delivers the articles you need for that specific page-type.
You can see a working demo at publicdemo [dot] opticalvalve [dot] com.
I made it like that for personal preferences and more easiness with integration of other modules on single articles or page-types. But I think you can achieve the same with the blog made simple module. Also the news module is very popular for creating blogs. You might want to give it a try.
Check the wiki for more info on the single options. There is a comprehensive documentation for the content dump plug-in here.
Just some thoughts.

Best
Nils