What type of blog do you have? Wordpress and many other popular blog services have plugins that enable addition of meta tags.

I assume the blog and site are on the same domain i.e mydomain.com and mydomain.com/blog
If they are on the same subject i would interlink them, it won't hurt you. It will actually be good for the site.

As far as I can remember you use WP as blog engine. Installing this meta tag plugin will solve your problem.

I think your linkink strategy is ok, but if I were you I would create a static site map page, which is suggested by the google also.

ok thanks for both those suggestions, that will be my next point to address.

Cheers for the advice, It came in very useful and I have completed the task in hand. Blogs now fully search engine optimised.