To add a blog to your course site, you need to be in the relevant content area that you wish to add your blog to.
Click on Tools and select Campus Pack Blog from the drop down menu:

The section that follows allows you to customise your blog.  Give your Blog a title and a brief description of what it is for/about.

Deployment allows you to choose how many copies of the blog you want, and who you want to view/edit them:
Single Copy allows you to have one copy that everyone enrolled on that module can contribute to
If you have groups set up in your course, then the One Per Group could be useful.  Only the students enrolled in that group (and Instructors) could see that wiki, and this facility would automatically create identical blogs for each group.
If you wish each student to have personal blogs, then the One Per Person option would be most suitable.

Blogs can be graded.  If you wish to grade your blogs then you will need to check the Create Grade Book Entry box.  You are then prompted to give your grade book entry an appropriate name, and allocate the number of points possible.  If you wish the grades to be visible to students then check this box:

 When you have set the options, click on Add.