Wildcard Domains.. Bad for website SEO?

Sounds like a good article title hah. anyways, I was actually asking a question. I ask this because I am using theblo*gsolu*tion 4 and one of the options is to use wildcards. I was wondering if having wildcards screws up SEO or your google rankings since the domain changes all the time. what i mean is since you will have blog1.site.com and also blog2.site.com, to google, does it look like your domain is changing (or that they are just completely different) or does it know that they are all still site.com? Could this potentially lower your placement in google? I know nothing lol.

As I understand it, a subdomain is considered as a separate domain by the SEs, unlike a traditional folder system. So it would be more difficult to rank well in natural results using that method.

that's what I was thinking. hmm.

Its only no good if you are using the same content on all

if u set it up to use dynamic content they are fine