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What is the best way to provide information who is using visiting blogs on wordpress installation? Is there a plugin that provides this information?

A: 

Google Analytics provides this kind of information. This plugin integrates analytics reporting in to your WordPress installation.

hsatterwhite
+1  A: 

Beside integrating Google Analytics, you should install the WordPress.com Stats Plugin. To use it, you have to get a free "Wordpress.com" API Key, but then you can get very good details about the real visitors of your blog. It is not as huge as Google Analytics but it is a very good combination of what a blog user want's to know.

Kau-Boy
Kau-Boy
Ah and if you also want to track the RSS feed stats, I can recommend the FeedStats Plugin (http://wordpress.org/extend/plugins/feedstats-de/).
Kau-Boy