First of all - thank you for your feedback, I really appreciate it.
Yes, this widget will display thumbnails of photos on the sidebar of your blog. thumbnails have a predetermined size of 160 by 120 pixels, you can add one to three photos in one widget. Thank you for the bug report, I've just fixed an issue, by the way you may click on the image to open it's page as well.
As of your questions:
1) I've just started to upload them several days ago, some of these photos are mine, some of them are pictures of my friends. Author's websites could be found on their respective pages. Some of photos are not for sale nor to use in commercial projects too, I will add the creative commons license attribute for those, who want to share their work under this license.
2) Yes, it's a good idea, I thought about adding a predetermined tag list (such as mountains, lakes, clouds etc) in the widget's configuration panel to show thumbnails related to these tags. Your idea is far ahead of mine, but it is also more difficult in implementation because it will require some intelligent tag analysis code as well as the presence of a good thesaurus with good API. I'll definitely think about it, thanks!
Thank you once more!