I tried to build a nice Yahoo! Widget that allows you to twitter and receive twitters from your friends. It should display the most recent twitters and display a nice input dialog for your own updates.
Sorry, it was a nice try, but this widget do not connect correctly in Twitter interface. I had been tried to twitter something but do not put anything. And i cannot see my followings...
But the interface is awful, as is the startling of the Windows prompt to give access to an API for Twitter. Yikes. I'd recommend using the Ultimate RSS Reader widget for monitoring Twitter feeds (http://widgets.yahoo.com/widgets/urr), and perhaps a Firefox plugin for posts instead.
Sad that something that clearly calls out for a widget, and is a widget on so many other platforms (Netvibes, Widgetbox, etc.) isn;t here. Wish I was smart enough to build one.