This usually happens when you are using a server to roam your my documents folder. The workaround is to not roam(which sucks for a lot of reasons). We plan to fix this in our next release.
-Brandon Turner [MSFT]
Is there any update on this?
I am using offline files to roam the Documents folder. Not roaming is not an option and I still like to use LiveWriter when I am offsite. Is there a workaround? For example make a certain folder available offline or change a registry key to use a different folder for the operation?
Ray - Author of Windows 7 for XP Professionals