I'm not Paul, but I think I can help you with this question. Once you are logged in, go to "My Dashboard". Scroll down till you find the box "Appearance" on the left side. Click on "Widgets". You can see all available widgets then. Via drag and drop move the "Image" widget into your "Sidebar". Once it's in the sidebar click on the arrow in the top right of the widget. For Widget Title you can choose whatever you like, p.e. "The Mellow Bakers". Then you have to type in the image URL which you just copy and paste from Paul's post (the link with the .jpg in the end). You can leave "Image Title" empty, but you can write "The Mellow Bakers" or something like that again. The image title is what visitors of your blog will see when a mouse pointer is hovered over the image. Then you have to type the link URL which is http://mellowbakers.com
. When people click on the badge, they will be redirected to the Mellow Bakers' site. Everything else can be left empty. Then you click on "Save" (width and height are automatically chosen) and you're all set. You can move the widget within your sidebar via drag and drop, too. So, this is what your widget would look like if you chose to take the small 160x57 badge (see attached picture). Hope this helped you!