Microsoft’s just released a new version of its Live Writer blogging client. Live Writer is my default blogging client already, and the new version, with subtly but very useful new additions is going to become the new default for me.
The Live Side blog features a complete run-down of the changes in the new version. Here are some of the highlights for me:
New and improved category control (you can now search through your categories) – great if you use a lot of different categories
Word Count – especially useful for those who write on a contract basis
Automatic linking to terms in your link glossary – no need to link to FriendFeed every time you use the term anymore 
Lightbox support (doesn’t work if you don’t have Lightbox installed on your blog)
Lots of new image manipulation functions – You can now tilt images, add reflections, and there are a couple more options for borders (including rounded corners for all of us Web 2.0 bloggers).
Overall, in testing Live Writer for a while now, I haven’t come across a single bug yet and everything feels very responsive and the update preserved all my settings.
The interface has seen a few minor changes, but nothing major, beyond the easy access to the ‘preview’ and ‘source’ function that is now available through tabs underneath the edit window.
Ugh, now I really can't wait to get my HDD fixed on my laptop. These new features look awesome!