Search Engine Watch has the ultimate coverage on this, both Danny, Chris and Gary all have blog entries on the way Yahoo! integrated blog results within the news search engine.
Chris Sherman writes Yahoo Integrates News, Blogs & Flickr Search Results
Danny Sullivan writes Thoughts On & Playing With Yahoo's Blog Search.
It looks a like the following, but Gary doesn't like the fact they name it blog, and leave it at that. Many news readers might not know what blog means.
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Forum discussion at Search Engine Watch Forums.