Microsoft Word 2007 can publish to a blog. It’s pretty cool. In Drupal, activate the Blog-API module. In Word, click the round button in the corner, then choose Publish, Blog. The URL is http://www.yourwebsite.com/drupal/xmlrpc.php

To upload images in drupal, it seems the best/easiest way to do this is with FTP. In the picture options, use ftp://ftp.mysite.com/pictures as the Upload URL. This is your URL to the FTP server. Once you close out of the settings and attempt to upload, you will be prompted for your FTP username and password. The source URL is the public-accessible URL where the images can be found.