First off, BlogEngine.net is a fine package. Nothing against it, but I had my reasons for wanting to use SubText. (I know contributors to the project) So when we first discussed adding the blog, I pushed for Subtext. I installed it on the GoDaddy shared hosting account we use and tweaked around. It broke during setup in trying to create some temp file it needed, I think, for creating the database schema.
I even opened a ticket with GoDaddy and played with permissions on the account. Unfortunately I wasn't able to get it working. Perhaps I could have figured it out, but it was better to move on. It was better to not waste time that could be used for client work; same reason we didn't write our own blog engine or hack up another open source engine.
Subtext supports medium trust; I verified it with a couple of the developers. So the problem is likely on the restrictive rules enforced by GoDaddy. They're just not going to change those rules for little ol' us either so BlogEngine.Net it is. And a fine blog it is.
Now if I was really daring (and had more time) I'd get a copy of Ken Egozi's blog engine and tweak it. Apparently he plans to publish the source when he gets time. I'd recommend looking into it if your looking for a blog engine. It's based on Castle MonoRail and other goodness.
-j