Using version (0.9.5) as described in the resolved post below I am getting the same errors as the previous support request.
Recently, I tried to embed a YouTube video into the widget using both normal WP methods (just the URL on its own line, and then the [embed]URL[/embed] method), and neither worked. With just the URL on it's own line, it just displayed the URL (unlinked). If I used the [embed] tag, it displayed nothing at all where the embed or link should have been.
I then tried using the same [embed] code in a regular WP page on the same site, and it worked fine. So it seems that it's the widget that is the issue. Any thoughts?
I have tried your resolution and it does not work.