WordPress

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WordPress is one of the most popular blog software packages. It is a publishing platform which allows you easily maintain your blog and extend the functionality by using third-party plugins.

I believe the following WordPress plugins are the best:

Google Sitemap Generator - helps you automatically generate sitemaps to make the task of Google indexing your blog much easier and productive.

External links:

wordpress.org - official WordPress site, where you can download the software and also find all the WordPress technical support you need on its forums
wordpress.com - WordPress-based blog hosting - hundreds of thousands of blogs are hosted there, and it's really simple to get your own blog started
WordPress Buttons - a collection of nice-looking buttons for all you WordPress fans to use

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