When I created my new WordPress Sandbox blog I used the newest version of WordPress 2.6.5. There is a setting under Settings>Writing to activate the xmlrpc functionality and it was not enabled with the new blog.
I wanted to post to this blog via Word 2007, but kept getting an error when setting up via Word, “Word Cannot Register Your Account”
Thanks to a blog post about this issue and the resolution, I am now able to post to my WordPress Sandbox blog via Word 2007
What I don’t know is if this XML-RPC setting is enabled or disabled when you upgrade from an earlier version of WordPress. If you find that after you upgrade to WordPress 2.6.5 (or any version upgrade) and you can no longer post to your blog via Word 2007 you might want to check this setting first, before you go scouring the internet and lie awake at night.
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Settings > Writing tab. Check the checkbox to enable XML-RPC
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What you now get when you set up the blog within Word 2007