I've seen a variety of LJ-based fiction, including roleplays in which character in the roleplay has his/her own journal. Negability, in which famous English writers are resurrected as teenagers going to high school together, is an excellent example. You can get a sense of what all the journal entries look like here. I'd be interested to see how it goes with original fiction, though.

Also, I hope everything's all right with your friends and with you. Very best of luck with the job stuff.