I'm writing this blog post (and the past couple) with the latest version of Windows Live Writer (Beta 2). It's been a good upgrade. The best new feature is that it now supports Blogger labels, which was one big reason I didn't use it often before. The inline spell checking capability is also a nice addition.
I was also pleased by the upgrade process. I was using the previous beta version and had a few draft blog posts, which seem to have come forward fine, along with all of my blog configuration and my previous post history.