Basically I feel their is a bug in that a user that has contribute permissions can not edit a blog post because the "edit" menu option does not show.
In order to give them access to the edit menu, you have to give them "Manage List" permissions which can't be correct.
To reproduce, you just need to log into a blog with Contribute rights only which gives you the ability to edit a item, but DOES not give you the ability to manage the actual list. You will see that the Edit menu does not show in neither the summary page or the Post page when looking at a specific post.
You can however manually change the URL to the EditPost.aspx page and it will let you edit. It is as if the "Edit Menu" is linked to the "Manage List" permission instead of the "Edit Items" permission.
Standard users should be able to create post, edit post, but not change the settings of the entire Blog Post library!
Could someone at least verify they see the problem as well? I noticed in Foundation the default members group does not get "Edit" level by default (only Contribute) however in Office Server, the default members group gets both so you'd have to take away Edit.
With this added "Edit" level (aka Manage List) you can change several settings of the list itself like it's name, Approval requirements, advanced settings, etc.
No way 500 users should be able to mess with the settings just because I want them to be able to go back and edit their own post... you kidding me?