I have been using Live Writer for a while now and it is pretty good. The latest version has some good improvements like a preview pane and the ability to see and work with the source.
Major gripe is that I can’t set a default font. It keeps reverting to Verdana which I hate.
One issue I have seen is that when publishing it hangs occasionally and I lose the post. Not sure if its Live Writer or my broad band. Quick fix is to always manually save a draft before publishing. At least you don’t have to re-write if it goes wrong.
Overall I’m pretty happy with Live Writer.