Sample Image: http://imgur.com/RrYRV
The top box uses the iframe code, the bottom is your standard widget.
The background color of the iframe body can't be overwritten, it's using the body background color from the theme. It's a CSS issue, but I'm working on that.
However, I'd love to just use the widget like I did before the 2.x update. I have tried different themes, even the stock themes, and it still doesn't show the title element.