It seems that, unlike the Blogger editor, images uploaded using Live Writer are viewable only at the display size. For example, with Blogger I could upload a 1024x768 pixel image but display it at, say, 256x192. If the reader “clicked” on the reduced size image, the original uploaded size image would show in a separate window. This feature was not needed for all images but handy for a more critical view. I want my PAW images to be viewable at 1024x768 pixels.
Of course, the Blogger editor had reached the point to where it was not working for me so I still prefer Live Writer.