A blip is a combination of 1) a song and 2) a short message that accompanies it. The way you create a blip is to first search for a song that you want to hear (or a song that you want your listeners to hear), then add a short message (under 150 characters), finally you submit it.
Submitting a blip is also referred to as “blipping”, so from here on out, when you read “he blipped my favorite track” it means “he submitted a blip that had my favorite song attached”.
http://blip.fm/