[Plugin: Category Posts Widget] names of all pages replaced with category name

Hi all,

this is wonderful widget. I would use it extensively. But there is a problem.

whenever i place the category widget on side menu and choose a category, ALL names of my pages and posts are replaced with the name of chosen category. looks very weird, but that is true. I am using Portal Colorido theme.
http://testas.klajoklis.lt/wordpress/

http://wordpress.org/extend/plugins/category-posts/