How do I incorporate Pheedo ads into my blog?

Sure. Pheedo is modeled at least somewhat after the AdSense program, so it should seem pretty familiar. Your first step is to actually get a Pheedo Account, which typically takes a few days to receive, then log in and click on "Exchange Ad Code" to get here:

Make any changes or tweaks that you'd like on this page (and remember that just like AdSense, your adverts will perform better if they're more centrally located on the page and are in colors that are compatible with your color scheme or even appear to be part of the editorial content).

The bottom of the Ad codes page shows you the script necessary to add a Pheedo advertisement on your site. It's going to look like this:

<script>
var simpleadTextColor = '#000000';
var simpleadTextFace = 'Arial, Verdana, sans-serif';
var simpleadLinkColor = '#006699';
var simpleadUrlColor = '#999999';
var simpleadSize = '468x60';
var simpleadBgColor = '#ffffff';
var simpleadBorderColor = '#006699';
var simpleadBorderWidth = '1';
</script>
<script src="http://www.pheedo.com/ad/13666/" type="text/javascript"></script>

The resultant advertisement, here a 468 x 60 "banner", is:

As far as I'm aware, Pheedo advertisements are compatible with Google AdSense ads too, which is important to know. Google basically blocks you from having other dynamic content analysis-based advertisements, while Pheedo works on ad categories instead.

Anyway, I hope that gets you going with Pheedo!