Well, I just downloaded and installed the new WLW 14 Preview (Build 14.0.3913.522), and it has some nice changes. Some of the changes, as posted on the Writer Zone are:
Video and Image Publishing Enhancements
- Upload videos to Soapbox
- Image cropping and tilting
- Additional border styles
- Support for LightBox and other image previewing effects (like Slimbox, Smoothbox, and others)
- Support for centering images
Editing Enhancements
- Auto Linking
- Smart quotes/typographic characters
- Word count
UI Improvements
- Revised main toolbar
- Tabs for view switching
- Improved category control with search/filtering
Well it seems Wordpress 2.5 has been delayed again, it’s initial release was for March 10, then pushed back until March 17, then March 21. So far according to the Wordpress trac it’s a day old so far. There is still currently 256 active tickets, which I hope will get fixed up soon.
It’s good that they are holding off until it is bug free, it will probably be one of the best releases to date. I’ve looked at the sneek peeks of Wordpress 2.5, and it looks great. I haven’t personally tried it, prefer to wait for a final incase it causes havoc with Windows Live Writer 
Well, I downloaded the final version of Windows Live Writer to see how it performs with Wordpress. So far it’s working, but will have to see how this post turns out first. I hate the whole "online installer" stuff, so found the "source" msi installer for a standalone installer (offline).
So for the people that want just the standalone installer, you need to download the WLinstaller.exe and after it installs WLW it creates a temporary .msi file in "C:\Program Files\Common Files\WindowsLiveInstaller\MsiSources\Install_{9176251A-4CC1-4DDB-B343-B487195EB397}.msi".
You will mostly need to enable hidden folders, as the directory is hidden, but after that copy the .msi to a folder, and there you have it, a standalone installer 