I’ve just put up 0.2 of the Links Widget. This is just a quick off-the-cuff version for WP 2.1. It needs work, but it’s a step in the right direction. Note that I’m starting to change all the file names (since I’m adding more options to the widgets than just drop-down select lists) so deactivate the old plugin.
With this widget, I want to support multiple instances of it and be able to specify via a drop-down list in the Widget control panel as to which category you want displayed within that instance of the widget. That way you can drag different link categories around on your sidebars easily…
Please give it a shot and see how it works for you.