I'm uncertain but looking at the support boards, it seems that the exclude posts thing isn't working, unfortunate, but I can live with it because it does what I want.
I wish that it had two other abilities. 1) that I could override the alphabetical order of the categories in the widget and arrange them as I wish and 2)That I could choose to have the post count for each category displayed besides the category name like "Funny Stories (5)"
Can anyone tell me where I might be able to suggest this to the developers, I know it said that they don't intend to update things and people should help, but I know nothing about developing these things, I'm dependent on the smart people who do! Thanks for the plugin!