Yes for location I have my zip code and I also have the geolocation marked. I also tried rebooting my Droid, uninstall reinstall I sent level up an email but no response yet
First off, remove the widget from the screen to the "Trash Can"
Long press on the screen to Add Widgets and select whichever home you want (normal or Smaller)
Input your Zip Code in the Default City Field at the top.
For now Start off by turning Geolocation OFF (you can change it later)
Uncheck 24hrs
Uncheck Celsius (if that is your preference)
Set Refreshing Rate to 30 Minutes
DO NOT check "Force English Fix:"
Sunrise/Sunset select "Official"
Leave Tempurature Notification and Forecast Opening effect unchecked (you can change later if you like)
Click OK.
This should add the widget back on the screen and after 30 seconds or so your current weather should display. If using Larger Home you should see you location on the widget (not shown on smaller version)
If it seems to be working OK, wait until you are sure the weather has changed some outside, tap the clouds or weather icons on the widget, the Forecast/animation page should open, (verify you location is correct if using smaller home) then tap the "refresh" symbol on the top left of the weather animation screen
Screen should disappear and you should briefly see a message box near the bottom that says "Undating Weather" a few seconds later the weather should change (if there has been a change) on the widget.
Once you confirm all of this is working OK, tap the weather info on the widget so the weather forecast page opens and tap the "Settings" Icon (gear) on the top right and change any of the settings to your preference.
Hope that helps,