It’s been said that links are the currency of the blogosphere. Once you start blogging you’ll want to setup a collection of links to sites you read and recommend. Links help build community among bloggers, and they can also help new bloggers get noticed by peers (a good blogger will almost always follow a new incoming link and check out the site doing the linking).
This screencast demonstrates the WordPress Links module. You’ll learn how to create and organize links, and how to position them in the sidebar on your site.