Google will definitely find your blog when another website links to you. Yahoo, Google, MSN and other search engines work in simular ways. A search engine like Google will find your blog and rate it according to how many links point to it, as well as relevant content within its pages. Therefore, in theory, you don't need to submit your blog to a search engine directory (and you should never pay one to have your blog included - search engines do not work that way, Google doesn't at least). But it doesn't hurt and is painless.
When you're blog is in a place you're satisfied with, I recomend you submit it to two places: straight to Google and to the human edited directory, dmoz. If you submit your blog to dmoz, make sure you select the right category (there's lots of them). Google may include your blog in future spiders (it's not 100%, but is likely), and a person at dmoz will one day come over and check your blog and add it if he/she likes to that directory. Dmoz does give blog and website information to Google, Yahoo and others, so you may as well submit. I'm no expert on dmoz, I just know it is recomended by bloggers to submit to it.
Because you've selected in your settings to have each post be a page, each post is qualified to come up in a search engine result for whatever you wrote about, be it "seychelles wedges" or "kadorables t-shirts." So when you're writing each post, think about what search terms a user might type into Google's search box (or another search engine) when looking for something specific. Yahoo has a great tool you can use called Overture. This was built for websites who want pay-per-click advertising on their sites. It measures what search terms are being plugged into Yahoo every month. So Overture is a free and easy to use tool to check if a phrase is being searched in search engines. Your blog has a good chance of showing up in these search results if you write your posts tightly around a phrase.
But, the bottom line is, you will rank higher in search results if you 1. have links poinint to your blog or specific posts on your blog and 2. 'optimized content' is written tightly into your posts - for those posts you want to rank for (or be found for), that is.
May the search engines be with you!