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In regards to your blogging questions; some blogs can be very beneficial to ones optimization campaign. Make sure you post in blogs that allow the spiders to crawl and index all the posts. Write in detail of your product or services. Then link to your site from the blog using contextual links. Not every blog will offer optimization benefits, some blogs may offer amazing amounts of traffic with no optimization benefits.
I hope this was helpful. let me know.
If you look around the SERP's in your category, you will almost certainly find a wide array of keyword density readings, from mininmal to quite heavy.
It's not that the engines do or don't pay attention to this. They certainly do analyze keywords on the page. The point is that there are no reliable guidelines and that if you make high quality pages with clear, unique titles and META tags and solid on-page content, that you have put yourself into a position to rank for those pages over time, given enough links to your site, etc.