I use picnik.com to add it to my pictures; it is pretty easy!! Just upload the photos & once you do you can edit them & then under the create tab there is a ABC text add........Good Luck!!
This is one way you can do it: http://laurensblog.greenfamily.net/2010/03/blogger-vs-windows-live-writer.html#2 explains uploading pictures to your blog while using Live Writer. Lauren
Thank yall so much