Upon first visit my thoughts are:
• I like the idea of a different more creative layout, as in.. there is no header. However, it just looks like there was a header and now it's gone, there is nothing when you first visit the site that establishes the name or logo.
• I do like the color of the background, but maybe not so much for a background, I think it is too bold.
• The navigation for the site doesn't stand out very much which isn't great for having people learn more about the blog.
• Holy Moly, that topic cloud is HUGE!
Here are my Pointers...
1. How about a lighter softer background. I made it have a subtle knitted square pattern and is in a color that goes well with the yarn in your logo. Click here to download background pattern.
2. Why not have your logo in the top left of the column? A blog doesn't need a huge header, but needs a logo of some sort that you see when you first arrive at the blog.
3. I noticed that your profile information doesn't fit properly underneath the photo, the html is a little wrong. Below I have some code that you can put into your top widget to replace what is there for the profile image now. It will add the logo at the top and have the profile image below with proper text placement.
<a href="http://www.hollyknitlightly.com/"><img border="0" src="http://lh5.ggpht.com/_3ds-iJgCweQ/TPWLlROup3I/AAAAAAAAAl4/kuuioELMIlg/Color.jpg" /></a>
<a href="http://s1023.photobucket.com/albums/af356/mooreaseal/graphic%20design/?action=view&current=portrait.jpg" target="_blank"><img src="http://i1023.photobucket.com/albums/af356/mooreaseal/graphic%20design/portrait.jpg" alt="Photobucket" border="0" /></a>
<div>Hey! I'm Holly & I love olives, sangria, David Bowie and sheep.</div>
4. Your navigation doesn't stand out enough, I would suggest some kind of bars that are the full width of the column in an interesting color with the text larger. (write me if you need help with this, I can't give everything away here)