So what is Windows Live Writer? My first thoughts was that it was going to essentially be an online version of Microsoft Word and similar to the Zoho Writer or Writely. According to a user at Neowin it is going to be a downloadable application:
This new product from Microsoft will allow a user to write documents/blog postings from a downloadable application called Windows Live Writer and post them to a blog (other than Windows Live Spaces). Right know, we have no other known features, except Spell Check, of this product until Monday the 14th.
The small image above is supposed to be a screenshot from Windows Live Writer but it could also be from a version of Windows Live Mail Desktop. If it has blogging capabilities then I guess you could say that it is WordPad on steroids?