I've upgraded to WP 2.8 and I can't organize widgets in admin panel. I've deactivated all plugins and then I was able to organize (drag and drop) widgets. Then I've started to activate plugins, one by one, and I was able to drag/drop widgets until I've activated this plugin. When activated, widgets froze again (unable to drag and drop them).
I'm expecting new version of this cool plugin so I can use widgets again. Until then ... :(