In the K2-Lite theme, the default display shows 'latest posts' in the right column. That's good.
When I go to the widgets and choose to add (note I say 'add') a 'categories' widget to the right column...it adds the 'categories' but removes the 'latest posts'.
Removing the 'categories' widget causes the 'latest posts' to reappear again.
'Latest Posts' is not a selectable widget addition - it appears to be being used by default.
Not much cop if it gets chucked away as soon as you add another widget!!
Is this a theme fault?