Move everything in the blogs folder up one level, then edit your conf/_config.php file to show the new base url. Any posts with images or direct links to other posts or emoticons will need to be edited to remove the "blogs/" bit, and the smilies should be doable by just editing and saving. Might be easier to sift through it via phpmyadmin and edit there, but it's up to you. I did it the "one post at a time" method, and really only by noticing an old post had something freaky happening.