Although I like Live Writer and I've been using it lately, I have issues with some of its functionality. 

Currently in Beta, Live Writer (review from techcrunch) enables blogger's such as myself to easily add/edit/delete entries on one or multiple blogs on many platforms from one central location.  With that said and knowing it's still a Beta release, most of my qualms with it below may or may not be fixed (enhanced) in the final release.

These issues include:

• When uploading images (.jpgs doesn't seem to be an issue with .gifs - haven't tried .pngs) Live Writer takes my original image and reprocesses it and runs some type of filter on it - why I do not know - leaving behind a grainer, blurrier version of the original. 

Original image:

Image enhanced by Live Writer:

I don't care why it does it, just give me the option to skip it if I don't want it. 

• Pasting does not preserve certain color formatting.  Now this one is a double edge sword.  Nobody likes it when Word "styles" pasted text into a document.  All of the <font> tags and CSS styles are bloated and it NEVER seems to get it right.  Recently I discovered a macro for Visual Studio.NET that allows me to copy code keeping the original color formatting even using simple styles to do so.  The nice thing about it is that it gives me two options; copy as html or copy as a style.  The former is self descriptive, the latter is nicer in that you can paste the text into a notepad and it has NO html but paste it into a ANY rich textbox editor and the style is there.  My problem is that the Windows Live Writer rich text editor is the ONLY one I've found that does NOT paste the style properly.  I can still do it however if I select to copy as HTML, switch to HTML view then paste but I'd rather not have to do it that convoluted way.
• There is a lovely dropdown from which I can select one or many categories for the current entry but there is no way to add a new category.
• While posting yesterday I noticed a fatal error that kept popping up when I actually published a post but it didn't crash the program and went away when I closed the program later and reopened it.  Unfortunately I didn't take a screen shot of it but if I run into it again I will update this post with it.

That's about it.  The pros way out number the cons on this one.  If you post from work and home, try using folder share and syncing your "My Weblog Posts" folder in "My Documents".  Any posts you draft at home will be available for you at for when you get to work and vice-versa.