Yes, you can set up a separate, private blog that requires members to log in. You can do this with a plug-in called Members Only – it’s freely available from the WordPress plug-in repository.
Anyone who visits the site who’s not logged in will be directed automatically to the login screen. After users log in, they can browse the site normally.
Edit 12/15/10
Based on your comments, it sounds like you don’t need a private blog – you need a private bulletin board or forum.
I would recommend setting up a system like bbPress in a sub-folder on the site (i.e. http://tmpfire.com/forum/) and installing bbPress in that folder. You can incorporate bbPress with WordPress, or keep it entirely separate. But you can also keep it private.
This way, you can have a WordPress-powered website with a private information/discussion board for members only.
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