Thanks Yosemite – I had EXACTLY the same problem and this fixed it!
Not sure where you’ll find the code, but your strange formatting problems may have more to do with the sidebar style specified in your theme’s stylesheet.
You’d have to understand HTML/CSS to check this out and/or edit it. Go to your admin area -> Click on ‘Presentation’ -> Click on ‘Theme Editor’ below that -> Edit your theme’s Stylesheet.
Hope this helps. 😉
I’ve got (almost exactly) the same problem, and I *think* that it must be from installing the WP2.0.3 update a few days ago. Now I can’t move any of my widgets around, nor can I get the details that I used to get from clicking on a specific widget.