Index: widgets.php
===================================================================
--- widgets.php	(revision 841)
+++ widgets.php	(revision 842)
@@ -532,6 +532,7 @@
 	$options = get_option('widget_text');
 	$title = $options[$number]['title'];
 	$text = apply_filters( 'widget_text', $options[$number]['text'] );
+	$text = $options[$number]['filter'] ? wpautop($text) : $text;
 ?>
 		<?php echo $before_widget; ?>
 			<?php if ( !empty( $title ) ) { echo $before_title . $title . $after_title; } ?>
@@ -547,6 +548,7 @@
 	if ( $_POST["text-submit-$number"] ) {
 		$newoptions[$number]['title'] = strip_tags(stripslashes($_POST["text-title-$number"]));
 		$newoptions[$number]['text'] = stripslashes($_POST["text-text-$number"]);
+		$newoptions[$number]['filter'] = isset($_POST["text-filter-$number"]);
 		if ( !current_user_can('unfiltered_html') )
 			$newoptions[$number]['text'] = stripslashes(wp_filter_post_kses($newoptions[$number]['text']));
 	}
@@ -556,9 +558,11 @@
 	}
 	$title = attribute_escape($options[$number]['title']);
 	$text = format_to_edit($options[$number]['text']);
+	$filter = (bool) $options[$number]['filter'];
 ?>
 			<input style="width: 450px;" id="text-title-<?php echo $number; ?>" name="text-title-<?php echo $number; ?>" type="text" value="<?php echo $title; ?>" />
 			<textarea style="width: 450px; height: 280px;" id="text-text-<?php echo $number; ?>" name="text-text-<?php echo $number; ?>"><?php echo $text; ?></textarea>
+			<label for="text-filter-<?php echo "$number"; ?>"><input type="checkbox" id="text-filter-<?php echo "$number"; ?>" name="text-filter-<?php echo "$number"; ?>" id="text-filter-<?php echo "$number"; ?>" <?php echo $filter ? "checked" : ""; ?> />&nbsp;<?php _e('Automatically insert paragraphs'); ?>
 			<input type="hidden" id="text-submit-<?php echo "$number"; ?>" name="text-submit-<?php echo "$number"; ?>" value="1" />
 <?php
 }