In header.php:
<div id="pages">
	<div class="alignleft">
		<ul>
		<li><a href="<?php echo get_option('home'); ?>">Blog</a></li>
		<?php wp_list_pages('title_li='); ?>
		</ul>
	</div>

In style.css:
#pages {background: #B8D4FF; 

	font-size: 12px;

	margin: 0;

	padding: 15px 0 6px 20px;}

#pages li {display: inline;

		list-style-type: none;}

#pages ul, ol {margin: 0;

		padding: 0;}

#pages a {background: #fff;

		color: #1E4C62;

		font-weight: bold;

		margin: 0 3px 0 0;

		padding: 6px 10px;}

#pages a:hover {background: #8EBAFD;

		color: #fff;}

.current_page_item a {background: #66FFFF !important;

		color: #006699 !important;}

.current_page_item a:hover {background: #transparent !important;

		color: #006699 !important;}