Last night I updated Blogs to the latest version of WordPress. The update seemed to go off without a problem but we are seeing some minor issues this morning.
If your blog uses the Atahualpa theme it is probably missing its header, Log into your blog and go to Appearance > Atahualpa Theme Options > Style & edit HEADER AREA, scroll down and click Save changes. Your header will now be back where it was.
I have also seen where some widgets may need to be re-placed in the positions they were previously.
Give give us a call with any other issues.