I still haven’t found a picasa widget that actually works, but during my search I did find this great picasa plugin which I’m going to try out right now by inserting a picture from my Picasa album in this post with a simple drag & drop.
It’s a picture that my neighbours put up on their B&B website and really love the view from which it was taken, i.e. from the highway! In fact the house & church behind our house (the new old stone barn) is theirs.