Seems like although instant upload via Google+ automatically uploads your videos and pics into Picasa, because they are private until you share them (you don't want to accidentally take a photo you want kept as personal and suddenly have it live online for everyone to see know?), there are a few steps to take when posting them on Blogger.
To share a picture it's easy as pie, just right-click the image on Picasa and copy image link, then post it on your blog, similar to how I post FB images as well.
For videos, however, you got to un-private it first by moving it out of your private instant upload folder (click "actions" and "move to another folder") to a public folder. From there you can access it via blogger when you insert image and pick from that particular picasa album.
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Because there's no full youtube integration yet, your videos from picasa runs via Google Videos for now until Google Videos effectively shuts down and does a full migration to Youtube's video player. Oddly enough, playing directly off Google+ and Picasa uses a type of Youtube-style player, while in blogger you're still stuck with Google Videos media player.
Sucks that the interface looks different, but it still gets the job done, and beats having to do a second upload for videos you want to share. Still, the interface might deter people from wanting to share their instant uploads onto their blogs.
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