WordPress 2.6 doesn’t work well with Windows Live Writer

I just updates my blog yesterday to 2.6 and doesn’t work well with Windows Live Writer, to be specific wordpress doesn’t allow windows live writer to upload images direct from my hardware.

This feature worked well with 2.5 but now gives me problems.

Can you fix this?

I’ve already tried to update file permissions to chmod 777 and 666 to wp-content/uploads and to update the settings in Windows Live Writer.

I will use FTP feature in the mean time but will be nice if you figure it out in the next version of WordPress.