I got this error when trying to publish to Live Writer. The remote server returned an error: (500) Internal Server Error. I thought at first it was just something in that particular post. Or maybe the server wasn't working, but I tried publishing from different blogs and using different graphics. After a lot of trying to figure it out, it narrowed down to the fact the post would publish but not if it contained a photo or graphic. I couldn't imagine that I'd used up my allotted storage, although I do post a lot of photos/graphics. I found someone else asking the same question in the Blogger Help Group. Isn't the Internet amazing?
If we don't pay a lot of attention sometimes and take notes for later, we miss the details of some of the things we use all the time. Like for instance, where do our photos go when we upload them for Blogger? I used to wonder and wish I had control over that so I could go delete them if I wanted to, and then I found out one day where they do go so I did have that info tucked away (buried) in my bookmarks. If you use Blogger, they go to your Picasa Web Album. If you're logged in to your Google account when you click that link you'll see all your blogs neatly listed and how many pictures are in each album. Well, sure enough my Windows Live Writer album had 500 photos in it and that apparently means full. One thing, as I understand, those 500 photos are 250 photos and their thumbnails. Also, in my case, the album held a lot of duplicates from when I've had to re-post or republish or try something again. So, I think I'm going to make a practice of deleting those duplicates as they happen.
Getting back to the error problem. As the tech recommended,
When posting pictures to Blogger from WLW suddenly stops working, the most common cause is that the Picasa album that Writer uses is full. If you go to http://picasaweb.google.com and rename the "Windows Live Writer" album to something else, then try again, it should work.
simply renaming the Windows Live Writer album to Windows Live Writer1 fixed it. There is now a new Windows Live Writer album in my Picasa Web Album. Happy.
(Update: I don’t think this is a problem anymore.)