I used this successfully:
<?php
define(‘WP_USE_THEMES’, false);
require(‘./blog/wp-blog-header.php’);
?>
I would really like to know how you set up these two categories for blogs! I’ve been trying to figure out how to create a second “index” where I can create a different list of posts without users coming from the actual index.php. The idea is to have a mini-blog post list on one page and the actual blog with all posts on another page — except I want both to have unique permalinks. Anyone?