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Hey Rick D,
My clients have done all 3 of the above options:
1. Send them posts via Word Doc.
2. Give me author rights to Wordpress.
3. Full Admin rights to Wordpress.
The ones just asking for Word Docs are usually doing it because:
a. The blog is not live yet.
b. They are trying to hide their domain from even me.
c. They are uncomfortable with giving anyone ANY login rights.
My preferred choice is to have Author rights. It allows me to do my job without the risk of being responsible for any "strange occurrences in the night".
The ones who give me Admin rights are usually because I am installing the theme, adding plugins, adding graphics, possibly creating banners, etc...Along with producing the blog posts and other pages.
Interestingly, new clients are usually just as willing to give me admin access as existing clients, but as I said before, I really prefer author access only unless there is a compelling reason for extended rights.
NOTE: There are a few blogs I have never logged into directly, only posting via Microsoft Live Writer. The login credentials would work to login directly, but was never a need.
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