I don't agree with ^^ at all. Wordpress is great, but you run into walls with functionality, integration and are limited with user access levels (the last may have changed recently with a plug-in.) WP is a blog that can turn into a cool looking website - Joomla is a CMS (like Drupal) that are...
Web hosting matters. But your content and SEO will matter more than the platform you're using. My blogger with a unique url shows up on the first page of Google in the top 3 spots for several of my keywords.
Although Google says there is no advantage to using blogger over wordpress I don't...
If you build a lot of non relevant links you could find yourself in the sandbox, but unfortunately until this process actually stops working for website rank people will often do them.
When building backlinks you don't want just traffic you want quality traffic so it is in your best interest...
You will want to include geographies in your title tags if you want to really localize your site. Make sure you have a Place Page set up with a physical address.
Although they aren't supposed to carry much weight I still would recommend using a geo footer at the bottom of your website.
1. I would agree with linking your blog to your analytics account
2. Webmaster Tools will help you easily identify statistics of your blog, crawl errors and what people are typing in the search engines to find you. It's a great tool that doesn't cost anything so take advantage of it.
3...
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