After realizing my blog was painful to read when any source code was added, I took a few hours this morning to play around.
First step was getting Windows Live Writer – that made a world of difference with regular posts.  However this didn’t really solve the problem of code formatting.  Next stop:  Plug-ins for WLW.
I tried the first one listed with the most downloads on the plug-in website.  While this one worked, it didn’t really handle long lines by embedding them in a scrolling container.  So, back to the drawing board.
The second most downloaded code formatter (Code Snippet plugin for Windows Live Writer) did exactly what I wanted.  AHA!  Finally I’ll make it work the way I like.  So after installing and testing, my blog looked WORSE.
Finally I found the problem.  There’s a setting in BlogEngine.Net 2.x that specifically controls how blog category entries are displayed.  It was not showing the full HTML for posts when I clicked a specific category.  To fix this, just go into Settings/Basic in the Dashboard and uncheck both checkboxes here:
Now when you click a blog category, the blog posts show as they should.