Found out the problem, after lots of fiddling and narrowing down where the error could occur I found it in the header.php. The file somehow lost a </div> and it affected how the sidebar worked. eeyass
Cheers
I read the code for the wp-stats application and it says what you need to do in that.
Looking for a way to hide the gif? Put this in your stylesheet:
img#wpstats{display:none}
It all works top notch.
Cheers