I get this question alot so I think I should just clarify it for my audience.  There is some confusion as to what a widget and a plugin is and the difference of both of them.  WordPress has many 3rd party developers who create widgets and plugins for download.  Most, if not all, are free of use for anyone using the WordPress platform.  Most of the widgets and plugins are compatible with the newest version of WordPress.  You can flawlessly upgrade the plugins inside the WordPress Admin panel.  There are thousands of plugins and widgets available but what is the difference and what should you be looking for?

A WordPress plugin allows a Blogger to add a function to his or her blog by downloading a software script.  Some of the popular plugins allow for better SEO, Adsense placement, sharing of posts, contact form generator and much more.  There are literally thousands of plugins you can download for free that will make your blog more powerful.  Some plugins are visible to the viewer of your blog while others are for the back-end where only you can see they are present.

A WordPress widget is an object you can add to your sidebar usually derived from a plugin.  Under “Appearance” is the “Widgets” section, you can simply drag and drop objects into your sidebar.  When you upload Worpdress onto your server you will have some widgets that are already available such as a search box and category section.  A widget is very important for your blog because the sidebar is where the action is other than your content.  A well organized sidebar is essential for reader interaction, advertising placement and an area for your readers to explore other content on your blog.

The short answer: A widget is a plugin that you can drag and drop in your sidebar.  A plugin is a script that you download that improves the function of your blog in your front-end or back-end.

The choice between Blogger and WordPress is a personal preference. Both have 3rd party widgets that let you customize your blog in an easy fashion. I composed a list of the very best widgets and plugins for better blogging if your using the Blogger platform.  Explained in one sentence, its time to unveil the list (no particular order).

1. Google Talk – On the side bar, readers can talk to you directly.

2. Friend Feed – Your friendfeeds can be viewed by the readers of your site.

3. Top Commentors – Widget displays the top commentors on your blog, in turn will encourage them to speak up.

4. Facebook Widget – Allows you to share your blog posts with your Facebook friends.

5. Recent Comment Widget In addition to the above “top commentors” you can also set your recent comments on the side bar.

6. Picasa Slideshow – Readers can view a slideshow coming from your Picasa albums.

7. Twitter Profile Widget – This widget allows you to add your profile and updates to your blog.

8.  Share This – Allow people to share your blog posts with eachother through email.

9. Buy Me a Beer Plugin – As a donation, allow readers to buy you a beer via Paypal.

10. Rating Widget – Let readers rate your content, this encourages interaction.

11.  MP3 player – Add your favorite song w/ this customizable plugin.

12. Widget Box – Make your blog into a widget.

13. YouTube Widget- Post your favorite videos on your blog

14. Social Blog Badge - Visitors can track all of your social networks.

15. Feed Wind – Embed any RSS feed on your blog

16. Price of Gas - Display the current price of gas, for some blogs this widget may be a necessity.

17. Alexa Widget – If your site has good traffic, show your rankings…some  web master’s say installing the plugin will boast your rankings.

18. Timeline – Create a timeline on your blog.

19. Flickr – Add a Flickr photostream on your Blogger blog.

20. Digital Clock – add a light or dark digital clock for your viewers who lose track of time.

21. Skype – Allows readers to view your status or call you.

22. Top Authors – If you have guest posts, then this widget will display who wrote the most posts.

23. Random Posts -Displays random posts on your sidebar

24. Delicious plugin - Have your latest Delicious bookmarks displayed on your blog.

25.  Tag Cloud – Displays tags you set from your posts on the sidebar.