Embedding Questions

you can have it installed in as many directory’s as you want
/blog
/news
/test
/sales
for example
since you have it set up as you do,
you can simply go to
admin – settings and change the 2 url’s to
www.awardproductions.com/blog
save the settings
kill the sub domain

see also
http://codex.wordpress.org/Installing_Multiple_Blogs