I am building a new website using VSD and I would like to embed a wordpress blog into my site. My hosting company installs wordpress for free on my domain but how do I embed it into my website in VSD? Is this even possible or do I have to send my site visitors to my blog made on wordpress that will look different from my site?

Any help would be great.

You could try putting it in an Iframe on a page in your site. Use the HTML tool in VSD and put the Iframe code in the body section.
Check out this thread: http://www.coffeecup.com/forums/s-drive … up-a-blog/

Better yet would be to create a directory for the blog and do a full WP install into it, e.g., /blog/. Then have your site navigation link to it as www.mydomain.com/blog/. That will always default to the main WP home page, whether a static page or a list of recent posts. Even if the WP will host most of your site, it would be easier to create a site home page (splash page) and then link or timeout to the blog directory.