BuddyPress.org

The “blog” tab here is to the main BP site blog. If you want to offer each of your members their own individual WP blog sites, you’ll need to activate Multisite in your WordPress installation (WP 3.0 or higher only):

https://codex.wordpress.org/Create_A_Network

I have WP 3.0.1 in Multisite mode running the latest BP, and it’s working great for me. I manually create the child sites, though, so I can’t vouch for how things work if you want to allow members to register their blog sites themselves (but I don’t see why it should matter).