Specifically, how to set this up for OUR blog =P Thanks to Dennis and this article for the info. These are steps for someone that doesn't already have a blog setup in word 2007. I will assume if you do, you already know enough and the settings/info from this will be enough.
Click new document and choose 'Blog Post'. The following screen will come up. Click 'Register Now'.
You select 'Other' from the Blog drop down and click Next.

You should see the following success screen. If your username is wrong or anything like that, you'll get a popup that says it can't register it or something similar.
- OK, finally, I will note that I followed the advice on codingmonk and also clicked 'Picture Options' in step 3. The default picture provider was 'blog provider' so I just clicked OK and moved on. I don't know if that's necessary, but I did it as well.
- Enjoy posting from Word 2007! =D