I was using a new WordPress theme, had recently updated Live Writer and also updated to the latest WordPress code. I then started getting an error "The weblog account could not be accessed using the specified username and password"…
I was scrambling all over. Then after looking in my event logs I came to realize my theme had my EditURI hardcoded.
To fix this open up your header.php file. Your "EditURI" link should look like the following.
<link rel="EditURI" type="application/rsd+xml" title="RSD" href="<?php bloginfo(‘url’); ?>/xmlrpc.php?rsd" />