I've been using Wordpress on my own domain with the downloadable version. There are so many plug-ins it is never ending and you can really take 2 new blogs and go completely different directions with them to the point you don't recognize them as using the same software.
I tend to limit my plug-in usage for Wordpress and Blogspot since installing too many Plug-ins can really slow down a blogs loading time and uses up your mySQL database space.
I mainly just install plug-ins like E-mail subscription, Tweetmeme, Facebook like, social bookmarking, commentluv, twitterlink, do follow, Meta tag plugin, sitemap, related posts, recent post and comments, and anti-spame and security plug-ins.
Like the above members have said, I too would also recommend using Wordpress.
Just a few things to note:
Wordpress.com = Hosted on WP servers, ie. you have to follow their rules, one of them being no ads on the website.
Wordpress.org = Self-Hosted and full control of the database and your content.
The Wordpress software, which you download and host on your own host.
You can download it at: http://www.wordpress.org (not .com, which is the one where Wordpress hosts your blog, not your own host).
It's good enough for Sony and a bunch of other companies, so it should do the trick for you. 🙂
If you don't mind being remotely hosted, then I would recommend Blogger.com over Wordpress.com, because Blogger is integrated with all the Google stuff, which can be pretty useful.
If you are using your own domain and your own hosting software (like lunarpages, hostgator, froghost, or cirtexhosting, eg.), I'd recommend using wordpress. It's very customizable and it will allow you to put ads on your site should you wish to do so.
I must say when I first typed the words in to Google what is the best blog software and hit enter I was amazed to see how many blogging sites, one good software to use is : podcasts.
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