Reading and writing provide the foundation of education.
Storytelling can be considered as the first steps in developing literacy - Blogging can provide an excellent medium for students to achieve some great literacy outcomes.
We start to tell stories at a young age and they mean many things to many people. My students have been blogging towards literacy with digital stories at http://digitalstories.globalteacher.org.au/ and  http://gcaseyglobal.globalstudent.org.au/
Blogging allows our stories to be dynamic and interactive. It gives students a stage in which to perform. The practice of telling stories allow our language and reading skills to grow - there is so much evidence around to supports this.
Some extracts and great supporting sites for the use of blogs in literacy include the following:
Blogs represent a perfect medium for literacy. Authors must read and write as they would on paper, while increasing their comfort with computers and the Internet. Because blogs do not require exceptional technical skills, but still offer the opportunity to “tinker†using Web programming languages for customization, blogs remain equitable for all age groups and both genders, and still provide a medium for learning programmatic skills - http://firstmonday.org/issues/issue9_6/huffaker/ (The educated blogger: Using weblogs to promote literacy in the classroom by David Huffaker)
http://blogs.ala.org/aasl.php?title=blogging_toward_literacy&more=1&c=1&tb=1&pb=1
(The official web log of the American Association of School Librarians.)
Blogging Toward Literacy: raytick_bloghandout.pdf - a must read for educators interested in blogging. Creating a community of readers among middle school student (Presentation Handout from the NECC 2006 Conference,
San Diego, California. Karen Connaghan – Pam Raytick)