My friend has a relevant blog to my website, it's listed in google. No high PR or anything.

He put a link up to one of my websites, blahblah.com.

OK, so the link is there, the blog is IN the google search index.

But the link does not show pointing back.

I type 'blahblah.com' into google, can see links from other websites, but not my friends blog.

My question is this....is the link to blahblah.com from my friends blog being counted by Google? I know google hides a lot of links....

If the PR of his site is low Google will not list it when you do a link:domain.com

I would try Yahoo and see if they have it. Guessing Google has it but just does not list it.

I would try Yahoo and see if they have it. Guessing Google has it but just does not list it.
Yep. Wizard, try Yahoo Site Explorer (http://siteexplorer.search.yahoo.com/), much more comprehensive than G's link: operator.

Also, take a stroll over to Google's Webmaster Central (http://www.google.com/webmasters/) and open a Webmaster Tools account. Again, better reporting than the link: operator.