How do I in Drupal 7 hook into the status message update area after saving a node and it says "updated node" to be a link to that node In Drupal 7, after saving a node it redirects you back to the page of the node with the message status saying "blog 'title of blog' has been updated".

How do I turn that status message into the link of that node? I need to do this since I have rules setup where I have it redirect to another part of my site, and it just shows the status message of that node being updated. I just need that clickable. im assuming it would be a hook somewhere hook node save?
You can use hook_node_update() that responds to node updates. There you can add the link in drupal_set_message().

However you may get two status messages, a default status message and another the custom message you just created. For removing the default message you can use Disable Messages module.