Google & sub domains

I have set up a project for a client but i'm having the trouble where I need to site the blog of the website, running on a sub domain (.net reasons), the rest of the website sites under the normal www. (The blog runs under "blog.domain", a prefix of the domain).

However, the client isn't happy with this as they believe this will effect their Google rankings for the blog and not be as strong as if the blog was in a folder on the site "domain/blog".
My understanding is Google will treat the sub domain the same.....

Could anybody please shed some light on this situation?



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