First off, I would imagine you need your wordpress installation to be inside a /blog/ directory on your server, unless you can do some fancy redirect.
Secondly, in order to change the URL structure from post id / post name. You can do this in your wordpress settings.
Go to -> Settings -> Permalinks.
You will need to select a custom structure, something like
/%postname%/
or if you wish to keep hold of the ID
/%postname%-%post_id%/
Then save your settings.
Hopefully that does the trick.
Cheers
Tim