One way to link to blogs is by using buttons. They can be a nice alternative to text links - especially if the blog name is long.
Some of your readers may not know how to create the image links. You can write a short tutorial like I did but you may find that the html code gets messed up when you post. That's usually due to the long image file names.
You can fix this problem by using a simple html form:
When you right-click in the box and "select all" you can easily copy all of the text.
To create the form I used the following format:
<textarea rows="3" cols="40"><a href="BLOG URL"><img src="IMAGE URL"></a></textarea>
Change the capitalized letters to the appropriate code.
Adjust the rows and columns to fit your post or sidebar. A column width of 20 works for most sidebars in Blogger blogs.
Check out: Buttons, Bows and Badges for Your Blog.