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I'm sorry you're suffering! The most likely problem you are having is one of connectivity; i.e. when you configure the blog everything is fine and you are on gps/wifi but when you go to post you have somehow lost your network.
There is the possibility that you can't connect somehow to blogger even though you have network but that 'should' be rare as blogger is quite robust.
A third option is that (not tested - just thinking quickly) is that you are suffering from something similar to our other blogger problems and that is - you create a blogger account but that is not the account that LC is trying to post to - we have a known issue where LC will currently only post to the first created blogger account you have - there is a fix we have applied to this problem and it will be out in our next release - this may be a cure for you.
One thing I would ask you is - can you create a Tumblr account and successfully post to it?
In response to your question, yes I can and did to check it out. As for your other issues, I will address each.
I tried to post immediately after I configured the thing and hadn't moved and was still able to do other things so its not a conectivity issues.
Its not that I can't connect to blogger as much as the little symbol to actually do the posting isn't there...I don't even have the option of trying to get it there.
I only have one blogger account so there is no issue with multiple blogs.
FYI all I think I read somewhere that someone created a second Lifecast feed (or whatever the term was) to get a post to go to their second listed blog, then renamed the feeds to match the specific blogs. Haven't tried this, but depending on how long til your next software release (and whether you want to test it), it might be a workaround for someone.