Here is a workaround:
1. Copy the following code (by clicking the button), and paste & save it in a text widget:
<p> <a href="http://issuesetc.org/"> <img title="Issues, Etc.™" src="****"> </a> <p>
2. Save the above red Issues, Etc. graphic to your desktop.
3. Next, load the Issues, Etc. graphic into your media library. (In the drop down media menu, click “Add New” and then select files).
4. Once the file has uploaded, WordPress.com will display a summary page. At the bottom of this summary page will be a gray box containing the new file’s URL. Your file’s URL will look similar to this:
5. Now, copy your file’s URL (from step 4), and paste it into the code in your text widget over the top of the part that reads:
Your new code in the text widget should look similar to this:
<a href=”http://issuesetc.org/”> <img title=”Issues, Etc.™” src=”http://yourblog.files.wordpress.com/2009/07/issueswidget.jpg“> </a>
6. Click “Save,” and voilà!
This post is not about WordPress.org blogs or self hosted blogs using WordPress software. This post pertains to only WordPress.com blogs.