ERRGGG!I hate the constant problems with LiveWriter. There are a few work-arounds. I've been writing the posts minus photos in LiveWriter. Posting to Blogger as a draft. Uploading the photos to the draft in Blogger and saving that version of the draft. Then back to LiveWriter to open the Blogger draft and resize the photos. Publish from LiveWriter. Fix any problems in Blogger with Edit Post. It's a lot of back and forth and the blog doesn't look exactly the way I want but I still like the Blogger platform better than WordPress.
I can't upload pictures to Blogger from Picasso for some reason ,claims I'm not logged in when I am. Google is no longer supporting Picasso from what I hear. I like Picasso because you can edit photo's and just upload to Blogger. That's the only reason I'm trying LiveWriter. Thanks very much for your input. Hope to be traveling soon. I have many blogs (to write, or already written that need photo's) going back about 6 months. Safe travels.