When you hit the "reply" link, several things are supposed to happen.
1. a reply comment gets posted to the blog which can be seen both on the blog and on the blogger's login page
2. a reply email gets sent to the blogger
3. the reply answer is 'threaded' to the original comment.

At the moment, 2 and 3 have yet to be fixed.

A "New reply" would also do 1 and 2 but instead of continuing an existing thread, it would start a new thread. This hasn't yet been fixed in V.3.

Yea, it's kind of confusing unless replies to comments are posted after the original comment but before the next comment. They are working on 2 and 3 though? Good to know...

my computer wont let me update... it will go to the full screen but if you click to start typing it wont let me.. what should I do?

Is there actually a difference between the categories classmates, family, on-line contact, etc.?  Also, how do I move blogs between categories, or can I?  For example, classmate to contact?

I noticed that where I have someone listed as say on online contact, on my home page I can see the beginnings of restricted-reading posts that person made to which I do not otherwise have access.  Is this a bug with the new version?