Hi Todd
Eh actually i didn’t fix it – i replaced it with another plugins that also allows inline widgets. It was driving me nuts after i spent almost a day trying to get it to work . . . i would guess its not my wordpress version (3.05) version that was blocking it, since bdsr above was using a late (3.04) version as well. Could well be my premium theme (iThemes’ Ionic child theme of Builder) that was blocking it).
But thanks for your help anyway!
Y.H.