Donwloaded, followed instructions. Two errors related to the code below
txtContent.Text = objWidget.Content
objWidget.Content = txtContent.Text
The error is
'Text' is not a member of 'System.Web.UI.UserControl'. C:\Documents and Settings\fnguyen\Desktop\wap\DNN1\WebSite\DesktopModules\Widget\EditWidget.ascx.vb 127 37 Widget
After commented out these two lines, compiled success. Verified that widget.dll is in the dotnetnuke bin folder.
Coping "controls" folder from dotnetnuke mainfolder inside the desktopmodule\widget does not seem to resolve the error.