As an non-naitive english speaker, I'm getting nervous over submitting tickets to Trac. Could anyone check the following out and, if it indeed is a problem, submit a ticket about it?
The line 547 in "default-widgets.php":
<li><a href="<?php the_permalink() ?>" title="<?php echo esc_attr(get_the_title() ? get_the_title() : get_the_ID()); ?>"><?php if ( get_the_title() ) the_title(); else the_ID(); ?></a></li>
As you can see, the title attribute that is assembled in that line makes use of "get_the_title()" and not "the_title_attribute('echo=0')" - and that causes problems when the plugin "WP-Typography" is used, among other things.
I believe this should be a quick fix.