To set up a blog and avatar, one must first log into their Wildern email and click Blogger to access the blog creation page. They then enter their name to create a limited profile blog. The blog title should be called "8w7 YOURNAME ICT Blog" and the web address set as "8w7YOURNAME.blogspot.com". Once created, the blog template can be customized by clicking buttons to make it visually appealing. Additional extension tasks include adding one's avatar and other gadgets to the newly created blog.