Blending
Its much easier than you think. Provided you have identical images at different exposures, the tripod is obviously essential here, its relatively easy once you've done it a few times.
Its a case of placing the images one on top of the other and "rubbing out" the bits you don't want and then leaving what you do want and flattening the image.
With Photoshop you can adjust the texture and shape of your "rubber" and even the opacity to selectively remove or just lighten sections of the image.
Plus the "dodge and burn" tools in the latest Photoshop now work very well.
There's also a technique I got from a Digital re-toucher which works very well on single images, shot in "difficult light" which I put on my blog.
http://soundimageplus.blogspot.com/2010/01/exposure.html
This can be seen as a digital version of the old Ansel Adams film Zone system where exposure and development were linked. Its also a bit like the old maxim of "expose for the shadows, develop for the highlights"
I've always been surprised that more people don't "balance" their exposures more, as there are lots of ways to do it, without resorting to HDR which is often hideous and very artificial in a lot of cases. I've only ever seen a few examples of it looking natural.
I can't actually remember the issue but David Clapp explained his methods in a copy of Amateur Photographer a while ago.