...and has also cause death. Tetrodotoxin is nothing to fool around with, and the Blue Ring actually carries a toxin similiar to tetrodotoxin, called maculotoxin and the bite of a blue ring is reportably more deadly than any land based animal and one of the deadliest in the ocean (venom related). Blue rings carry enough maculotoxin to kill about 10-25 human adults, at a dose of only one milligram each- and if my memory serves correct, this is still the most potent natural toxin known. And yes- it can be absorbed through the skin via the water the octo is in, but generally only temporary mild effects have been reported.
I love the blue ringed octopus and have studied it extensively. I have considered getting one for many years for a dedicated tank. When I had children however, I decided it simply wasn't worth the risk (picture the octo getting out of the tank and my son getting interested-- simply not worth it).
If you do decide to get one, DO NOT handle it whatsoever. It's bite is small and generally painless and can go undetected until symptoms set in- by then, you may not be able to react (actually- it's only a few seconds anyway). As a precaution, have someone present with you trained in CPR and provide them with the instructions to notify 911 of tetrodotoxin/maculotoxin poisoning immediately if you are bitten.
As a side note, TTX has also been used (specifically crushed puffer fish) in the makings of potions used by witch doctors to make a person appear dead. The person would be buried and then the witch doctor would break in the tomb, steal the "corpse" and wait for the effects to wear off and claim to have risen the dead. Oceanic puffer fish have a much lower dosage of TTX, but still can be deadly. Tank raised puffers do not have TTX because they do not feed on the fish in the Tetraodontidae familiy like the oceanic one do. TTX is also thought to be a possibility for the origin of the "zombie" phenomenon.