I’m not clear with your description, but try the following.
http://wordpress.org/docs/installation/different-address/
That’s not my situation. That thread refers to a situation where a blog is installed in a wordpress/ directory. My blog is installed in the public html directory. In other words, the location of my index file is http://www.url.com/index.php.
Sounds like the same situation, just backwards. Instead of moving the files out of a folder, you would move them into one.
1) Change your blog/wordpress address to http://yourdomain.com/blog/
2) Create a folder named blog under public_html.
3) Move _all_ WP files/folders into the blog folder.
The problem with that is that the old individual archives refuse to display.
They shouldn’t if you followed 1) above, which means going into the admin > Options >General…
Blog URI
WordPress URI – both changed to the new location.
If you missed that, see: http://www.tamba2.org.uk/wordpress/site-url/
Moderator
James Huff
(@macmanx)
Volunteer Moderator
You may need to reset your permalinks as well.
BTW, please take a moment to think about where you are before posting things like “the interface for these forums is god-awful.” Your opinion is always welcome, but please choose words that will be less hurtful to the individuals that volunteered their free time to make these forums the way they are today. Without them, there would be no WordPress support forums.