The new Google Blogger keeps advertising the new drag-and-drop Layout design feature and widgets in the start page, so I thought I'd try it. After staring at Blogger Layout help and not getting anywhere, I realised that something was missing. I found that Layout isn't available for blogs published using FTP. Bummer. Would've saved me half an hour if Blogger had written this limitation into their on-line help.
A bit later. Blogger provides a Custom Domain service. Basically, you use Google as the domain name server that will redirect all DNS queries to your Blogger-hosted blog. With this service, you can use the Layout feature.