The best new feature in WordPress 2.3 is the integration of tagging into the core of WordPress. However, the tag cloud widget & functions that are included leaves a lot to be desired. So, with time on my hands, I decided to whip up my own version of the tag cloud that lets you configure the tag cloud with all the customizations (well, almost, see below) the tag cloud template tag allows.
You can find the plugin home page (and leave comments) here.
NOTE
Development on this plugin has STOPPED! I am looking for someone to take it over. Find more info here
Upgrade
I suggest using the built-in WordPress plugin update feature, but to manually upgrade, follow these instructions:
1. Deactivate the plugin in the WordPress admin menu.
2. Delete the existing tag-cloud.php file from the /wp-content/plugins folder.
3. Upload the tag_cloud folder to the /wp-content/plugins/ directory.
4. Activate Configurable Tag Cloud through the ‘Plugins’ menu in WordPress and add the widget to your sidebar.
5. (Optional) Add ctc() template tag to your theme. Can be configured either via the Options menu, or via parameters in the template tag.