The new version of Sharper Photo is available at:
Windows Live Writer Sharper Photo Plugin (gallery.live.com)
Windows Live Writer Sharper Photo Plugin (skydrive)
Sharper Photo is a the Windows Live Writer plugin that I created a while ago, but ever since I started using Windows 7 and the latest version of Live Writer, it was not working properly, Now it should work as long as you have the latest version (if it does not work let me know)
This plugin will only work if you already added pictures to your blog post and don’t have any pictures selected, It allows to make the photo file size smaller as well as edit the photo that live writer will upload using your favorite image editor.