Today I started seeing errors when I tried to post to blogger via LivWriter
Turns out, the issue is because Google has made changes to thier APIs and authentication system, that LiveWriter can no longer authenticate in.
The blogger online composer works fine, but uploading images there is a real pain.
Here is another way out..if you want to post to blogger, but do not want to use the online composer...
you can...just mail it in !
In your blogger account, you can turn on a secure email system, and any email you send to this account will be published automatically !
Go down to Settings-> Mobile and email
Set up a new email id and select "Publish email immediately". Any e-mail you send to this id will be published. So be sure NOT to share this email id with anyone.
You can insert images into the e-mail, and they will be handled by blogger correctly the same way it did for livewriter.
This is how I am posting this post as well..