Widgets have come to WordPress! By installing the Widgets plugin by Automattic (download zip or svn) and using a widget-ready theme, you can bring the popular customization feature from WordPress.com to your very own, hosted WordPress installation. (WordPress 2.0 required)
What is a Widget?
“Widgets” is just a silly buzzword we’ve chosen for this sidebar-chopping plug-in we have developed. They could have been called Gadgets or Gizmos or Wizbangs or Whatevers. On the surface, they’re just things you can use to personalize your WordPress site without knowing HTML. Way down deep, they may be something entirely more significant.