Yesterday in IndiBlogger meet they gave demo of this software and here I am; trying my hands on it. And I believe at least 50 of the 70 odd bloggers shall try it out. Cost involved: 70 odd pizzas!
They say you can insert maps. You surely can, but only US maps! So I will insert one of Texas where the all important 4th March primaries have to be held!
It said 'Update Weblog Style'. I tried doing that and nothing has happened so I guess that works with Windows Live Spaces only.
A good feature is that you can add tags. Both external tags (Technorati,del.icio.us etc.) and internal (Blogger.com or Wordpress.com tags). For the latter use 'Set categories' at the bottom of screen.
You can add plug-ins. There are quite a few on Windows Live Gallery. At least more than the gadgets available for Live.com and most of them were unimpressive and useless. However developers have created nifty plug-ins that interface with other sites like Picasa and Flickr. I downloaded 'Flickr4Writer' and inserted following Flickr picture using this.
One good thing is that you can add multiple ping servers (like pingomatic.com) and each time you publish a post the server will be notified.
Live Writer is pretty nifty tool. However with Microsoft you can expect some kind of lockin! There is no Linux or Mac version (Well these guys said that you can't even run it on Windows NT Server!) and the posts are saved in proprietary '.wpost' format.
Give it a try. It is good.