Konfabulator is out! certainly has a LOT of promise. Both for usability and just generally adding cool and nice things to your computer. It is built to be extensible so it can be made to do pretty much anything!

The most of the supplied widgets are a bit overly simplistic for my liking so far but this is the first release. I really like the little photo album which grabs photos from ones Pictures folder and runs them as a slide show. I do like the simplicity of the to-do list but it takes up a bit too much space. I can see i will need to learn how to hack these widgets.
I love the 3rd party game widget, ‘ChainShot’ its a nice little puzzle game.
I can see there will be some awesome 3rd party widgets for this.

Note, widgets are mini apps built for Konfabulator

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Widgets/improvements I would like to see:
RSS feed display
iCal linked to-do list
a ‘simple graphics’ mode for widgets
more configurability in default widgets
multiple slideshow albums displayable
ability to place widgets into the menu bar area
‘float above all option’ for all widgets
MovableType blog entry (kung-log is great, but this may be handy for small/quick entries)
inter-computer text clipboard

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Check out this screenshot I took of my tiBook running konfabulator. That desktop pic is from Digital Blasphemy