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I am completly new to WordPress. I have a requirment where I need to develop a site where people will form communities and will blog around. They will make friends and send friend request. So its much a combination of social Networking Stuff combined with Blogging Stuff. Can somebody suggest that if I should go for WordPress or look for some other option like. ELGG.

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Take a look at the http://buddypress.org/ plugin

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+1 for buddypress - it has all the facebook-style functionality of friends, statuses etc, and it's easy to set up blogs for users. This site (CUNY academic commons) is a good example. – djb Nov 27 '11 at 18:45
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You can try Mingle. I haven't used it, but it looks pretty cool and very simple. https://wordpress.org/extend/plugins/mingle/ http://wpmingle.com/

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