My blog is getting to the point where it has more than 20 posts and it is time to think about breaking it into multiple pages. At the same time my blog home page has a PR3 and I know that second page when I will create it will have PR0. So I may loose some traffic after creating it (since I have bunch of good keywords in my first entries). Any suggestions how to deal with this situation? Should I create second page anyway and just wait for PR to update (it probably won't be PR3 since this page is not externally linked). Or there are better ways to deal with it?
First, You must stop worrying about PR. PR update happens all the time, probably as frequently as weekly. Google export it to toolbars once in three months. So no need to wait for the next PR update. Having multiple pages is always better. The text below a certain limit doesn't have much value, so having too many content in same page is actually decreasing your traffic. if you have good content in first article, retain it in first page some how. It is all about how well you manage and what script you use. Overall, I guess it is high time for you to have more pages and expand. Bigger sites always have better chance of getting more traffic and SERPS. many pages linking back to your homepage actually helps the homepage to boost the PR and traffic.
The sooner you make another page, the better for you and your page. It is nonsense to put all content on one the first page. You have to order your page in the logical structure.
Social bookmarking is GREAT for PR work on individual pages because you link to that specific page/post as you submit your article
Thank you guys for your replys ! I just created second page for my blog It is now looks more compact and readable. And I hope my second page will get indexed soon. It is a great comment about toolbar update every 3 months. Reading this forum I got an impression that actual PR update happens 3 months (which is kind of slow). I will definitely work on adding more content. Once I pass 10 posts limitations of this forum I'll send my blog for review so you can take a look what I'm doing there.