vince88 - 8:27 pm on Aug 22, 2011 (gmt 0)
To answer your 1st question, it's better for you to go with www.mysite.com/blog . The reason is because when you create a subdomain like blog.mysite.com , Google treats that as a separate site. You will have to optimize your site again from the beginning.
But when you set your blog up as a subfolder, then Google considers that as part of your main site.