Many of our candidates present their CG work on a website or Blog. In most circumstances this method is totally acceptable – when we need to send a candidates details over to client at short notice this is the perfect method.
Some companies do prefer to receive a DVD reel so it's a probably a good idea to prepare both. Many people also have personal blogs and website for the own interests – to post YouTube clips, commenting on the latest gadgets or films they’ve seen etc. The problem I see is many people have begun to blur the lines between these two types of site. I‘m not saying that you shouldn't be able to inject some personality into your website but you must remember if you hoping to get a job from it then that should be the sole purpose of the site. This is especially important for those looking to enter the industry, without credibility and industry experience, it really is only the presentation of your work that's going to get you your first break.
Think about your website as you would an interview – you’re not going to dive straight in to that situation and start telling a prospective employer your deepest (or darkest!) thoughts – but I’ve seen people that have done exactly that on their own website. Also remember it is in the public domain and often somewhere you're actively encouraging people to look to assess your suitablity for a job.
In some ways it's more important than an interview to present yourself well. In an interview you have the opportunity to build a rapport and pitch the conversation at the right level, it could be that you get on really well with your interviewer and the conversation takes a more relaxed turn. You can’t do this with a website, the reader will read it and make judgements.