Don’t worry. I have answered it myself. In reinstalling your Plug-in I forgot that the Permalinks needed to be recallibrated and in doing so, everything is now working a treat,
Turns out this was the issue from the words of the Theme Developer:
“Too bad you didn’t include info that it’s “Text Widget”. They think you’re referring to some custom field in admin panel created by us 🙂 The last reply is correct: http://codex.ww.wp.xz.cn/Data_Validation but that’s all we know – it uses SOME validation and removes id=”” and leaves class=”” intact.
I’ll skip investigation on why it removes id=”” and I just fixed it on your server by replacing it with class=””. It works on your server. On demo server (also WP 3.4.1) we use id=”” and it doesn’t remove it when I hit “Save” in “Text Widget”.
The reason I suspect: your DATABASE (and not WordPress) removes that for some reason. That’s rational explanation because we both use WP 3.4.1 on test server and your server.”