In case you missed it, there is a new build of live writer. The update has some new stuff:

• Tagging support
• Support for Blogger Beta
• Categories are sorted by name and support scrolling, plus improved support for reading categories from your blog
• Improved startup performance
• Paste is enabled for Title region and TAB/SHIFT+TAB navigation between title and body supported
• Insert hyperlink added to context menu when text is selected
• Title attribute in Insert Link dialog
• Custom date support for Community Server
• Improved keyboard shortcuts for switching views
• Change spell-check shortcut key to F7
• Add ‘png’ to insert image dialog file type filter
• More robust image posting to Live Spaces
• Improved style detection for blogs 
• Fixed issues with pasting URLs and links
• Remember last window size and position when opening a new post
• Open post dialog retrieves more than 25 old posts

It does feel more self assured if you know what I mean; snappier. 

Also very handy are the flickr addins, thanks to the pointer from Steve Clayton.  The integration with the plugin from TimHeuer and combined with the other flickr tools it is easy to use my flickr account as a picture store.

If you haven't tried it yet by the way, you really should have a look at live.com which has improved no end on the old search engines.  I like the image search which has a handy scratchpad feature for keeping the pictures you like as you are searching.  With the flickr tools its easy to upload pictures by right clicking, send to flickr and with the live writer add in, its easy to pull them into a blog post, resize, fix the margins etc.