Some Blog FUD from CNN. All of the information the article presents is factual. The FUD comes from the wording choices used.
First, there is the title, "Have a blog, lose your job?". Interesting bit of scare tactic headlining.
Second, there is the opening statement, "His infraction? He ran a Web log, where he freely gabbed about his impressions of life at the Mountain View, Calif.-based Internet search giant.". His infraction was NOT that he ran a weblog where he happened to freely talk about his work; his infraction was that he talked freely about his work on his weblog. There is a subtle but very important difference between the two.
Third, "Even though employee blogging ranks behind personal Internet and e-mail use at work, Google and other companies are starting to crack down."... Does firing one employee mean that Google is "cracking down" on bloggers? Hardly.