Hey!
I sort of solved the problem and sort of didn’t. Im using the ultimate tag cloud widget (found here: http://ww.wp.xz.cn/extend/plugins/ultimate-tag-cloud-widget/). UTC has author specific tags so it does the job pretty nicely for us. We also decided that we use our own tags so that there is no cross tagging between authors. This way we got it to work. Its not the ideal way though but it works well enough.
Tdo tag fixes actually rewrites the code and rules of the basic tag cloud widget that is included in wordpress so all you need to do is activate the plugin and then use the wordpress tag cloud and it should work. Fancy permalinks i think means that you have added a custom way the permalinks are shown. For example http://www.yoursite.com/category/%5Bcategoryname%5D/%5Bposttitle%5D and not some random url with loads of numbers and stuff.
Sorry i cant help you more. Good luck and if you find a good sollution please let me know!
