My suggestions:
1. Scrap the name. vB Journal sounds like "Dear diary....". Rebrand this as vBlogger and take advantage of the blog craze.
2. Improve the install. I don't mind the code and template mods, but there is no reason I should have to add custom templates by hand.
3. Stop giving it away. I was already looking for a program like this. You can easily sell this for $45 - $50 a license and another $20/yr for support. I would have bought it. Even having a free version 1, I'd still buy it if you were committed to making improvements and enhancements.
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