Blog title links to nowhere

So, I’ve had WordPress running for a couple months now. Most everything works, but a friend of mine pointed out that the link on my page titles goes nowhere.
The setup:
My blog is contained under a folder called blog. index.php is at /blog/index.php. Accessing /blog/ should obviously return index.php. Under “General Options”, both “WordPress Adress” and “Blog Address” are set to “http://example.net/blog”.
The blog’s title, therefore points to “http://example.net/blog” which is a dead end. I can correct this with a rewrite rule, but it shouldn’t be necessary. The title should be a link to “http://example.net/blog/”.
I’ve poked at both “WordPress Adress” and “Blog Address”, but that proved more dangerous than it was worth. Any idea how I can fix this up on WP’s side? Perhaps the meaning of “WordPress Adress” and “Blog Address” should be in the wiki, as this issue cropped up unresolved in a search.