There is an issue when editing blog entries that contain textual HTML code in the text. The blog's EditEntry.ascx.cb does a call to HtmlDecode() in the Page_Load Event that eliminates any HTML code in the entry's text.

Quick Fix (Hack): Change to the following code in /DesktopModules/Blog/EditEntry.ascx.vb:

Change:   teBlogEntry.Text = Server.HtmlDecode(m_oEntry.Entry)
to:              teBlogEntry.Text = m_oEntry.Entry

Recompile and copy the Blog.dll to the dnn\bin directory of the production server.