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There are SEO experts on here who know far more than me, but my understanding (and therefore what I have always stuck to) is that you should try to get a new domain name and IP address for each site / blog you have. Please note this does NOT mean you need separate hosting packages for each site - a lot of hosting companies (Phatservers for example) offer separate IP addresses for separate domains within the same hosting package so it won't cost you more than a nominal $1 / month extra for each IP. A domain name is about $10 max to buy so at those prices why would you not have a separate domain and IP for each site? That way you know you are set up correctly and won't have any issues with trading links or SEO.
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