The 'Widget logic' field at work in standard widgets.
The widget_content filter and wp_reset_query options are at the foot of the widget admin page. (Both are off by default.)
the simplest solution without using plugin and other custom loops. In case someone is interested, see the instruction here:
http://www.dbuggr.com/smallwei/show-latest-post-author-wordpress-front-page/
"Adds a more advanced paging navigation interface.
Want to replace the old ← Older posts | Newer posts → links with some page links?
This plugin provides the wp_pagenavi() template tag which generates fancy pagination links. See the installation instructions for using it in your theme."