I was using this fantastic plugin, with no problems, until I checked Google webmaster tools, and found out that my site has 2400+ 404 error pages. This was a sudden raise from around 40 error pages that appeared the exact day that I installed this plugin.
The error is that with the Control navigation options enabled (either numbers or buttons), each of the numbers/buttons you create for your news item creates 404 error pages when crawled by google.
So if you have 4 news items on your sidebar appearing on every page, every single page on your website will now have 4 additional 404 errors.
Example: http://www.wordpress.com will now include
You can see this, because if you hover over the numbers or buttons on the widget, this link appears.
Clicking on these buttons of course works properly and exactly as it should, so it isn't actually bringing up 404 pages. However, Google significantly penalizes websites when they have that many errors.
I hope this can be addressed soon, as this is an excellent addition to anyone's site. In the mean time, as long as you don't enable control navigation, everything is fine.