I've been using WLW in Beta for a while now and have loved it. I saw that it recently moved out of Beta and was keen to upgrade. If you download the installer from here, like I did you may have found that it complained about not being supported on Win2K3 - bummer I thought.
A little digging around and I found that if you can access the MSI directly it will install OK. So to save you some time here's the link to the MSI in English.
Thanks to Chittaranjan for the lead and Thomas for the answer.