First, in response to a question by Rahel: How do I get Hebrew with nikkud to display in Blogger?
I typically cut and paste from an existing source. That is:
1) You might notice I link to mechon-mamre whenever I cite a pasuk or pesukim. They have several Tanach's, including vocalized ones. Simply cutting from mechon-mamre and pasting in Blogger does the trick.
2) When I want to revocalize text, or write something from scratch, I use Microsoft Word, and to get the vowels, I insert symbols. The Hebrew letters and vowels are all within the character set under Times New Roman, for example. After creating the vocalized Hebrew text, I cut and paste into Blogger.
3) I also have a specific character Encoding specified in my Blogger settings. In the Settings Tab, and within that in the Formatting Tab, the Encoding is set to Universal (UTF-8). Perhaps if it were set differently the above two methods would not work.
This is important for my transliteration program as well, since it requires as input vocalized Hebrew text.
Speaking of which, the program is about to go Beta -- I plan on releasing it within the next few days.