"I've been playing around with Windows Live Writer for a little while now (since it first came out in beta!) and the more I use it, the better it seems to get (in case you haven't used it, I encourage you to check it out).
So what's the plugin called and where can I get it?
It's called "Insert Website Image" and you can download it from here!
All source code can also be downloaded from here!
This is a pretty cool WLW Plugin...