WLW team ships new beta 2 of Windows Live Writer.

New Authoring Capabilities

• Inline spell checking
• Table editing
• Ability to add categories
• Page authoring for WordPress and TypePad
• Support for excerpts and extended entries
• Improved hyperlinking and image insertion
• Paste Special

Integration and Compatibility

• SharePoint 2007 support
• New APIs enabling custom extensions by weblog providers
• Automatic synchronization of local and online edits
• Integration with Windows Live Gallery
• Support for Blogger Labels

Plus...

• New look and feel
• Available in 6 languages
• Improved accessibility and keyboard support
• Many other frequently requested enhancements!

I thing I will post some review after i played with it.

Also check article "Coding blog engine with MetaWeblog API support and using it with Windows Live Writer" to find out how to extend your blog engine to use it with Windows Live Writer by adding MetaWebLog API support.