Changes to WordPress installation location
Sometime during the development of WordPress v2.8.x they started to be more strict about where WordPress has to be installed if you want the blog front-end (WP-Blog) in another directory.
Before this change it was possible to have WordPress installed completely separate to where you would like to have your WP-Blog page. But with v2.8.x WordPress has to be installed either in the same directory as WP-Blog or WordPress must be in a subfolder of your WP-Blog page. All other configurations seems to be unsupported from now on. I have listed the supported configurations here and I will put this in the documentation shortly.
Install WordPress & WP-Blog in the same folder:
/blog/ <= WordPress & WP-Blog
Install WordPress in a subdirectory of your WP-Blog page (recommended):
/blog/ <= WP-Blog
/blog/wordpress/ <= WordPress
If you use the first configuration then you will need to re-publish your WP-Blog page everytime you upgrade your WordPress installation, if the filename is “index.php”. Therefor I recommend that you use the second configuration because that is simpler to maintain. And it is also the default configuration in WP-Blog when you add a new page.
So if you are experiencing strange behaviour with your blog check how your site is setup. And if it doesn’t obey to any of these two configurations then you need to change your setup.