Well, this is a bit sad, but I guess it's still a beta.

I was just entering some code sample in a blog entry via Windows Live Writer when it removed the line breaks from all my preformatted code sections (ie the <pre> sections).

Here's some screen shots of the bug in action:

1. Entering the <pre> code:

wlwb3_bug1

2. Switching back to Web view (F11)

wlwb3_bug2

3. Switching back to HTML view (Shift+F11).  Nothing else was pressed.  You can see the <pre /> section is now messed up.

wlwb3_bug3

4. And back to Web view just to make sure it's been butchered (F11 again)

wlwb3_bug4

A quick look on google doesn't show anything about it.  Guess I'll go submit a bug report.