Thumbs up for Windows Live Writer beta blogging tool
I've been trying it out and despite a bug or two, I like it. And I like it more each time I use it. It saves a click or three, and that makes a big difference when posting online.
I've got mine hooked into SVW's Movable Type platform and it provides a really good editing interface, plus you can drag/copy links and text in one click.
MSFT could show us a thing or two in the blogging tools arena, and that would be great. But MSFT has some bigger challenges ahead.