Be hosted on blogspot at the same time appear as self hosted - good for SEO ?

Hi,

I've always used hosted my blogs at a subdomain e.g. blog.domain.com
The reason that I chose blog.domain.com is not to put an additional load on my server so it runs faster.
Recently, I've read that it would be better if the blog is hosted at domain.com/blog/

Now I came up with this idea.

have a blog blog.domain.com managed by blogger, wordpress etc.
The theme to include nofollow, noindex meta tags so no duplicate content problems.
Then have a *mapping* on my server e.g. domain.com/blog/the-post-that-blogspot-has-produced.html
I will have a script that basically removes the nofollow and noindex tags and creates a static file for each blog post on my server.

Do you see this a huge SEO benefit of spending 2-3 hours working on this idea ?

 

that's a good idea..

 

And why do you need this?

 

one question then, is it bad to have a sub.domain for the blog (blog.website.com)?

 

thanks

for SEO purposes of course.
I guess the SEO rank would go to the domain domain, no ?

Wondering if Matt Cutts can share his thoghts here ?