BINGO!!!

The problem was looking for API Password.  It isn't called that in the user profile.  It is called  Web Services Password.  I followed all of the directions to embed the .xml file in the root directory, etc. etc. It was using the wrong password.

For every other system the password you use to sign-in is the same as the one you use to allow an editor, such as this Live Writer to gain access.  The people at Movable Type decided you needed an extra layer of protection by providing a different password for "Third Party Access."

I told you I wouldn't quit that easily.  Now let's see if I can get this work in Scribe Fire and w::bloggar...

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