The next beta build of Windows Vista will include the Sidebar. That's good.
The build will only include 5 gadgets. That's bad.
You will be able to get more gadgets from MicrosoftGadgets.com (and DesktopGadgets.com eventually). That's good.
Most of the third party gadgets are awful. That's bad.
There's a guide to make your own Microsoft gadgets. That's good.
The Microsoft gadgets are made using DHTML. That's bad.
Stardock plans to find a way so that gadgets can be made in a non-crappy manner such as XAML/WPF.
But in the meantime, check this how-to guide.