including RSS and formatted images for the Link Widget

Hi,
Following the update to 3.5 (and 3.5.1) I needed to install the plug-in for a website I am in the process of revamping. Up until the upgrade, I had not used the Links option in the default wordpress dashboard interface. I am really pleased that the plugin has restored the option, but now I am curious as to how I can add some formatting to the Links sidebar widget. For instance, if I add an image to any of the links, the image appears ‘as is’, from the URL placed. This can be awkward if the image is too large or small. How can I edit the plugin to add a size format for the image display? I had a look at the .php file for the plugin and have assumed that it is calling what must now be a ‘hidden’ part of the wordpress files. Where would I find the files the plugin is calling? Also, although I add a URL to a feed to a link, the feed does not form a part of the displayed link in the widget. is it possible to edit the files associate so that the feed is displayed, in some way.

http://wordpress.org/extend/plugins/link-manager/