I was able to use the RSS widget for feeds from your site on my site, see
http://wp27.bytesforall.com/ left sidebar, bottom
In the RSS widget, at "Enter the RSS feed URL here" I've put
http://babalublog.com/wpr/feed/
Are the blogs that you're trying to pull feeds from Wordpress blogs? Maybe it's a feed type/format issue, RSS vs Atom, something like that.
Can you get the feeds from this URL
http://wp27.bytesforall.com/?feed=rss2
(When you put that URL into your RSS widget)