Update: This has now been fixed and will shortly be available from the Windows Live Gallery. Do not download from the Gallery unless the version shows as 18.104.22.168 as this is the updated version. It is just pending approval at the moment.
Update 2: It is now live on Live Gallery.
It has been brought to my attention (and sadly confirmed ) that there is a slight bug in my Video Plugin for Windows Live Writer. The issue is simple, if you put more than one video into a blog entry, some of the video properties (like in the sidebar) get shared, and no matter what you set the insert method to be (full embed, image, plugin decides), it will always be the full embed code. This is something that I am now looking into and hope to have a resolution soon