I had a bout with Live Writer where it was failing trying to upload pictures and so I abandoned it for a while. You probably felt some of the results of painful capturing screenshots and trying to get them to fit correctly. Hence the horrible layouts the past few days.
So I'm taking another shot at it. It appears to me that the SharePoint weblog is MUCH more integrated into this latest release of Windows Live Writer. No issues thus far. Let me add a picture and use this as a sample post.