Love this widget, but I'm experiencing an odd, but fortunately consistent issue when using Image Widget 3.3.4 in WP 3.3.2, and I've tested this on at least 4 of my WP sites (same versions). From the widget, when I either "add image" or "change image", the add image box pops open just fine, and if I select an image on the first page or _page_ to an image, it pulls back the correct path and populates all fields appropriately in the widget.
However, the issue happens whenever in the add image popup and I search for something and select an image from the resulting filtered list. The issue is that in this scenario it does NOT ever select the image and therefore does not populate the widget fields at all.
I'm not certain if this is an image widget issue or a WP issue, but thought you guys (Modern Tribe) should know, as it's a nuisance in an otherwise fantastic widget. LMK if you need additional information ... glad to help.