I have finally updated to Office 2007, and learning its tricks takes its time. One nice feature I noticed was that it allows you to register your own blog and publish blog notes directly from within Word. Here is link to the instructions: http://office.microsoft.com/en-us/word/HA101640211033.aspx. They do not mention it there, but for WordPress you should choose MetaWeblog API (not Atom) for it to work. If you can see a picture below, then it also supports upload of pictures:
Ok, it supports photo uploads, but it does not scale photos. And it is not also possible to set the categories / tags from Word, as far as I can see. But nice to get this much, at least.