If there is post thumbnail, it will be displayed above the headline of the post.
If there is no thumbnail, the first picture of the post is taken.
You can set the size for the thumbnail or just take the standard from your options.
Decide yourself, whether you want to show the excerpt, saved with your post or just the first three sentences or the first twenty words of the post.
Upload the folder to the wp-content plugins directory.
Activate the plugin through 'Plugins WordPress.
The styling of the widget requires some knowledge of css.
Add something like -moz-box-shadow 10px 10px 5px #888888 -webkit-box-shadow 10px 10px 5px #888888 box-shadow 10px 10px 5px #888888 to the widget style to get nice shadow down right of the container.
Browse the code, check out SVN repository, or subscribe to the development log by RSS...
New feature to have post of the main loop in the widget on single pages. 1.9.
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