The Text widget is used for displaying some short text on the sidebars or for writing certain HTML code to insert a hyperlink, displaying an image file, etc. The option of the Text Widget (below figure (a)) prompts us for the title to be displayed above the widget.

(a) Options of the Text widget (b) Output of the Text widget
The text is added in the large box below the Title box. The checkbox, Automatically add paragraphs is checked if we want to display small line space between paragraphs. Above figure (b) shows the biography displayed on the sidebars.
In order to display an image or hyperlink on the sidebars, we can also write HTML code in the Text widget. Let us assume that I want to display two images with file names img5a.png and manningqeip.png. Then, before accessing them through HTML code, the two image files must be uploaded on our server through the Media Library. After uploading the images, we can write HTML codes to display them and can use them to link to some site. A sample HTML code is as given as follows:
Beginning Web Development for Smartphones <a target="_blank" href="http://www.amazon.com/dp/B0042X9CHI"><img width=350 src="http://bmharwani.com/blog/wp-content/uploads/2010/11/img5a.png" </img></a>
Quick and Easy iPhone Programming <a target="_blank" href="http://manning.com/harwani"><img width=350 src="http://bmharwani.com/blog/wp-content/uploads/2010/11/manningqeip.png" </img></a>
The title of the widget is set to My Latest Books (refer below figure (a)). This code displays the book titles along with two images on the sidebars as shown in below figure (b). The image being hyperlinked navigates us to the target URL when clicked.

(a) HTML code to display image and hyperlinks through Text Widget (b) Hyperlinked images displayed on the sidebars
For more information, refer my book, Blogging with WordPress 3 for Beginners available at Amazon.