I downloaded Live Writer yesterday. After installation it took me some time to find the link to my space (sschinder.spaces.live.com).
Now I am trying a first post.
Posting seems to work. Now trying an update with a picture.

That picture was taken, warped and convert to brush stroke using my mobile.
Update works, the image is also added in the album Blog Images. Only thing is that the image appears twice in the album. I was also able to add the category journal to this post.
It is also easy to open previous post that have been created from the website.
Wands | Fire | Male | |
Cups | Water | Female | Shui |
Swords | Air | Male | Feng |
Disks | Earth | Female |
Table insertion works fine, but spacing is a bit odd.