I have been using Live Writer for about a week now. Mostly I am impressed with the product but I have noticed a few things:
1. If you attempt to embed You Tube videos it will not work. It just posts the html as text.
2. Using the Ping feature locks up Live Writer.
3. No integration for trackbacks and I haven't been able to find a plug in.
4. It has trouble with some blogger templates (It won't load the template on Olympia Academy for example)