There are height and width variables in the code that can be edited to some degree to custom fit this widget. I wouldn’t go too small on the width. You start to lose text on the right side of the widget.
Probably the sweetest feature on this widget is the ability to see the top videos for the day, week, month and all time.
One of the things that I think is missing is the ability to watch the video right with the widget. VodPod has this feature. You can watch a video without leaving the site that the widget is on. I think that is very important to blog owners.