Image Problems from Live Writer

This has been an ongoing problem since the start of WordPress 2.1. Unitl then, no problems at all. Image uploads worked great. Image uploads STILL work fine with Community Server, even in Beta of Commmunity Server 2007. My imgae uploads have no permission problem. The WordPress editor uploads iumages fine. Before 2.1, as I said, image uploads worked fine. I sure would like to see a resolution to this.