BlogDrive is a free blog creation tool which provides easy to use templates, layouts and tagboards making it a popular solution for both beginners and advanced users.
Blogdrive is the ultimate in FREE online publishing — it is perfect for the beginner and advanced user! This tool provides the following features: Multiple weblogs/journals; Multiple authors; WYSIWYG editing (IE only); Built-in tag board; Built-in commenting system; Permalinks; Email entries; Full page editing; Entry editing capabilities; Quick edit tool; Archive calendar; Email notification system; Publicity pings; Contact form; Mini-meditor; Blog categories; Multiple locations; Clean interface; and, Header graphics. More detail at: www.blogdrive.com/blog.html#1
Free, but they do ask to post their banner on your page.