Adding an existing wordpress blog to a new wordpress site.

OK. So I feel like this might be easy. I have a wordpress blog. It was initially installed in a subdirectory. So: http://www.mysite/blog

I am getting lots of page hits and want to combine my personal page and my blog. So someone can go to http://www.mysite.com (which has another wordpress installation on it) and click on the blog link in the menu to see my blog. I don’t want to change the address of my blog and its posts because I have a lot of search engine results I don’t want to disturb. I can obviously link the blog menu item to mysite.com/blog but then all the widgets in the main page won’t be displaying recent posts for the subdirectory.

I feel like there must be a simple way to do this. Or maybe its not simple and I am just hoping.

Any ideas???