People are saying to me 'Do Follow' blogs count towards your backlinks and help you rank better. Hiw do I find do follow blogs or does it not matter.
I really don't worry about no follow vs. do follow. Even with a quote on quote do follow link, there is no guarantee it will help you with rankings. I tend to focus more on traffic. A well placed "no follow" link can still get traffic to your sites and blogs.
I'm not sure what exactly your question pertains to, but if you are asking if adding your own links on posts in your own blog helps with backlinking, then yes. Notice that wiki sites always have backlinks to other articles on the same site.
Don't focus on only getting dofollow links. Focus on getting what appears to be a natural group of backlinks. If all of your links are dofollow then Google and other search engines are going to manually penalize you.
I wouldn't go with chasing blogs... It's better to go chasing High PR website that allow you to have a Do-Follow link in your Profile. Google+ is one example
There are freelancers selling lists of high pr dofollow blogs for cheap.Just join any freelancer site and post a project.