If you want the del.icio.us daily blog post to work in WordPress, your settings should look like the settings below. To get to these, log into del.icio.us, click "settings" and find the "dialy blog post" link. Finally click "Add new thingy."
job_name: DailyDelicious {doesn't really matter}
out_name: {wordpress user here must have at least author privileges or it won't work}
out_pass: {wordpress user password - will be displayed in plain text}
out_url: http://domainname.com/xmlrpc.php
out_time: 23 {military time}
out_blog_id: {leave this blank}
out_cat_id: 17 {number of the category id for the post - get the number under Manage->Categories}
I have decided to turn this off. Instead I have a link in my sidebar that reveals my del.icio.us tag cloud and below the cloud my most recent links.
