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Google’s Blogger tool has a great blogroll gadget, which I’ve always wanted in WordPress. I tried a few plugins that advertised similar behavior but was never quite satisfied – so I made my own.
This will grab all your links with a category of ‘sidebar’ and show them in a list on your sidebar. Specify each link’s RSS/Atom feed address and it will grab the latest post, a link, and reorder the list based on when these posts were written. It only requires that you have jQuery and PHP and uses the Links and Widget section already included in WordPress.