Windows Live Writer is a great free tool for authoring blogs. Aside from a nice WYSIWUG editor, it also handles the uploading and resizing of images, making this a painless process.
Setting it up this time was a little more challenging before and I didn't see any good guides out there, so I felt it needed capturing for others who may be having problems. This wasn’t an issue for me with earlier version of WLW (circa 2008) but is with the one I just downloaded via Windows Update.
When configuring your blog account, select “Other blog service”

Now add the URL of your blog, including “metaweblog.axd” along with your BE.NET admin account.

WLW doesn’t detect the blog type, so tell it to use the MetaweblogAPI. You again type in your URL with “metaweblog.axd” appended to it for the Remote Posting URL:

Give your blog a nickname and you are all set.
Yes, this works as I am typing this post with WLW!!