Latest posts widget takes me to category rather than individual post

On a web site/blog I built for a friend, I've installed the "Latest Posts" widget in a sidebar. It displays the posts perfectly, but if you click on a post it takes you to all the posts that share that category rather than the individual post. Here's the link: http://deniseyamada.com/blog/

If you click on the second post down under "Recent Posts" (currently "Problems as Opportunities"), you'll see that it goes to a page with a different post, in its entirety, on top, followed by the "Problems as Opportunities" post. Shouldn't it be taking the viewer just to the individual post they clicked on? How can I make it do that?

I'm using Atahualpa 3.5.1 and WordPress 3.0

Thanks!