kaspars, thanks for the quick reply. I do not understand completely though. Do you mean that it should look like this: http://pastebin.com/SJqMhRtM?
I updated the functions.php file on my webpage, and now the widget seems to be working pretty well except for some error, see here: http://i52.tinypic.com/15ry62e.jpg. Not sure what is causing this, as I’m not good with programming. It does not matter what sidebar I put it on, it always looks like this.
When the widget was in the footer sidebars though, it looked perfect. No extra space beneath it.
Best regards.