Going to open myself to public ridicule by admitting a simple mistake so that others may benefit from my experience: At the time of my previous post, I had only tried this in IE9 (9.0.8112.16421). I have since tried in Firefox and the operation completed successfully.
I am experiencing the same issue running WP 3.4.1. I select the JSON and click the ‘Show Widget Settings’ once and nothing happens. Upon clicking the button a second time, I receive the same error message listed above.
Anyone else?