I am doing this post using Windows Live Writer [windowslivewriter.spaces.live.com]. The latest build had a built in support for dasBlog (blogging software I use in my blog). If you need more information on customization WLW for dasblog, read this post from Scott and this post from dasblog.Info.
Update Posted on 2/Oct/2006: When I first using WLW I was using dasBlog 1.8.x, which didn’t support image uploading. I had to FTP images and for some firewall issues with my ISP, FTP from WLW was not working. Since I upgraded my blog software to dasBlog 1.9.x the image upload problem was solved. I am now able to upload images to my blog using WLW itself. Thanks to dasBlog & WLW authors.