Kevin,
Love the update. I actually really like this app, but had to inactivate it last week because it was just eating up too much memory and fighting with launcherpro and I couldn't run it. Kept it because I knew there would be updates that would fix it, and I believe that is the case now. I've been playing around with it trying to overload it into a Force Close, and its not happening, which is great.
I have noticed one thing. I'm not sure the 'Require System Keyguard' setting is working correctly. I am using Beautiful Weather Home as the only widget in this app, and when I wake the phone, even when I have that setting activated, it still goes into the selected areas when I hit the weather icon, time, or date on BW. Could be that I completely misunderstood what you meant by that description, but I figured I would point that out.
Other than that, I love it. Enabling any hardware button to wake the phone is nice. Gets me back to the settings I was used to on my old LG phones before I got the Droid.
Could I make one suggestion. Could you make it an option on whether we can have the swipe icons in either the standard stock location or the bottom like you have it now? As I said, I only use one widget with this, and it just looks unbalanced the way its set up now.