I tried this plugin and it look working great on the admin panel in all areas.
But if I try to publish via Office Word 2007 with the XML-RPC support, when I choose to insert a category, I get a select box that lists all categories in the blog and not only the restricted ones. Of course, I am logging in to the xml-rpc with the restricted test user (which is being successfully restricted in the admin panel).
Is there an issue with that ? Is there a way to fix this?