Solved!
I had copied and pasted a custom permalink that was wrong. Once I changed it to a correct structure all seems to be working. I am going to mark this as resolved.
Thanks for those who tried to help.
Tried the other theme, no go.
I have not seen this yes/no page before with the widgets. it does not show on my other WordPress intall.
Have any of you others having this problem used a Semilogic theme?
Nope, don’t have it. I have uninstalled all plugin’s (except askimet) and started over, still same thing. And they stay in the same place they were before.
I have the update on another installation. I have no problems there. This was a fresh install about 1 week ago.
They worked at first. Now they are just frozen.