Yeah, something weird with those widgets. Adw will at least prompt for how large to make them but then stuff doesn't fill it right.
Turn on "Auto Stretch" in ADW Settings -> Screen Preferences. Does a real nice job. Even so, some widgets are pickier than others.
...when I hit the home menu in the blur launcher it goes right to ADW launcher.
Same problem here... except it's not really a problem since i'm sticking with ADW. I was a little worried though, so i backed up my ADW and uninstalled it... philblur came right back to normal for me, no problems.