Should I Have A Stand Alone Blog? Sub-Domain, Sub-Folder?

There was a lively discussion last week at SMX discussing whether a blog should be a stand alone like ours www.redvwbus.com, Sub-domain http://blog.mysite.com, or a sub-folder like http://mysite.com/blog.com.  What do you think? Can this split your link juice or link equity? Would it be best to have a funky wacko blog name, or integrate your corporate [...]