Basically I am asking is whether Google et al are going to treat my webpages developed through wordpress in the same way as they would treat other websites with a *.com? Also, as far as SEO goes do I have to jump through some additional hoops if I am working with a wordpress site ? Would I have any advantages instead ?
Your question is a little vague. Are you asking about using a hosted WordPress blog (on wordpress.com) vs hosted? Or are you asking if WordPress itself has any SEO benefits over static websites?
One of the major ranking factors Google uses to establish rankings is something called "domain authority." If you are using a subdomain of WordPress (e.g. mysite.wordpress.com) instead of your own domain URL (e.g. www.mysite.com) then you are sacrificing that domain authority. Each page will have to rank on its own merit. You are always much better off with your own top-level domain.
In terms of WordPress as a platform, it has several inherent SEO benefits. First, it supports URL rewriting which makes it easy to integrate your keywords into the URL - an important ranking factor. Second, there are lots of really helpful and effective SEO plugins. Finally, the more (quality) pages your site has, the more the search engines will like you. WordPress itself doesn't accomplish this, but it is one of the easier-to-use content management systems out there and makes it dead simple to publish content. None of these is exclusive to WordPress, but in my opinion it is the simplest "out of the box" solutions available right now.
Most hosting providers have a push button setup to install WordPress. I use Hostgator and it is super simple from the cPanel. You want to register your own domain name with a .com,.org, or .net. If you are serious about seo then stay away from the other extensions. WordPress itself is inherently decent with seo, but you will want to do some things like install all-in-one seo plugin. This will help you ensure your meta tags have the right info in them.
A hosted blogger blog has equal footing with a .com hosted on a dedicated server. Quality of content is what determines where a page ranks. Not the TLD or software used for the website.
If your content is hosted on Blogger and it is high quality you will naturally attract quality links from related websites. These are very valuable in Google's eye and will boost your ranking accordingly.
FYI, one thing many people get confused about with SEO is how Google actually works. What most people fail to consider is that there are two parts to Google's algorithm: page ranking and spam control. Matt Cutts is head of the spam control team. That's why you hear him occasionally "hearing" about ranking factors. That's because he's not part of the team that actually determines them. And spam control algorithms do not determine a page's ranking. That part of the algorithm tries to weed out junk and cheaters. Things like domain authority won't help you rank better. It just makes you less likely to be considered low quality.
On the other hand, things like quality incoming links do determine your pages' rankings. That's why quality content is king and always will be.
Using hosting services like BlueHost where you can install WordPress from within BlueHost, work well and enable you to use your domain name of choice if you purchase your domain name through them as well. Additionally, WordPress has many great SEO plugins that you can use to help track and hopefully lead to increasing SEO rankings. WassUp is a very helpful option.
In general, avoid including ".wordpess" as part of your domain name. Your target market will perceive your website and business as more professional. Best of luck.