Windows Live Writer: Add Screenshot Images to Blogs Real Quickly
If you publish blogs using Windows Live Writer, here’s something extremely useful - you can now insert screen captures in your blog posts directly from Windows Live Writer and that too in a single click.
Let’s look at the current workflow: you capture a region of the desktop using some screen capture tool, save the screenshot image to some folder on your hard drive, then open Windows Live Writer and insert the image. Right ?
Here’s the new workflow - open Windows Live Writer, press the Screen Capture link, select a region of the desktop and done. That saves 50% of your time.
To turn Windows Live Writer into a screen capture tool, download this file (22kb, ScreenCapture.dll) and copy it to the following location:
C:\Program Files\Windows Live\Writer\Plugins directory.
Open Windows Live Writer and you will see an "Insert Screen Capture" link in the sidebar. This screen capture add-on for Live Writer is courtesy Joe Cheng at Microsoft.
And if you like to insert screenshot of a desktop Window in your blog post, you don’t even require this plugin. Just bring the window to the foreground, press Alt + Print Screen, switch to Windows Live Writer and paste (Ctrl+V).
Related: More Windows Live Writer Tips

Thanks a lot for the useful info, i will make full use of it !
:)
Amit, Thats really cool tip
I have been doing similar stuff. I use OneNote, and so I simply do WindowsKey+S and then select whichever area, and then do a Ctrl+V on LiveWriter.
However, both the plugin technique and the OneNote technique are to be used carefully. I realized that pasting a direct screen capture into the blog post results in a much bigger size of image. So now, for large captures, I paste into paint or photoshop and then save as jpeg. This results in a smaller size of the image.