I have previously published a post How to backup your blog in which BlogCollector and HTTrack was mentioned as one of many methods to backup your blog. Recently, someone asked a question about BlogCollector, saying he couldn't get BlogCollector to work. Since I haven't used BlogCollector after New Blogger templates was introduced, I decided to make some tests.
I used BlogCollector to try to backup Testing Blogger Beta which is a blog using a New Blogger template in a New Blogger account. BlogCollector failed to backup this blog.
I tried BlogCollector on Blogger for Dummies which is also in a New Blogger account, but still using the old classic template. The backup was successful, backing up all the 60 posts in the blog.
So the conclusion is that you can use BlogCollector for blogs using the old classic Blogger template, but not for the New Blogger template. For that, you will have to use HTTrack or other methods.
Update 9 August 2007: This update should have been updated earlier, but BlogCollector has already been updated to backup New Blogger blogs. However, I haven't really have time to test it but I think it still can backup photos. The best way to backup blogs is to do the tedious manual method by editing each post in the EDIT HTML mode, save the content of the post in a Notepad file and save them one by one, but it is a lot of work.