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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.
Gary Price writes Yahoo Should Let News Search Users Know What a Blog Is; Search Only Blogs From Yahoo News/Blog Integration.
Basically, if you do a news search, for example, on wedding via ask jeeves, on the right hand side, you will find "BLOGS BETA", with blog results followed by a link to More Blog results...
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.
