you can use text widget and place image embed url there and it would display your image accordingly.
Do you want an exmple? here it is:
Top widget in left sidebar of my blog:
<div class="custom">
<img src="http://www.opajaap.nl/rijp.jpg" name="Plaatje van de week"
alt="Plaatje van de week" title="Rijp" class="pvdw" ></img>
</div>
In style.css:
.custom {
padding: 5px 0 0 5px;
}
.pvdw {
width: 178px;
height: 259px;
}
Make sure your picture is sized correctly (in my case 178 px wide)
or use width and hight as in .pvdw to do it in the browser