Do you want the blog as a way of informing your customers?
Do you want the blog to help your website gain rankings?
By attaching a blog to your domain it really is acting as part of your website and this is good in the essence of content. As the more content you add to your blog the more content is getting established with your website. But it will not help to increase pagerank.
However if you want the blog to give power to your website it is actually better to create a seperate blog all together on a unique domain and different IP etc from your website. You then link it to your website and then this way it actually helps to build up the pagerank of your website.
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