Why don't you just click the little "x" that appears next to the word you entered? It makes the widget contract back down.
If the X works, then hitting escape will probably work also, since it erases the whole word in 10.4
I'm still using tiger, and the dictionary widget is by FAR the one I use the most.
When I'm writing a paper or reading something, I use the dictionary and thesaurus constantly, and regardless of what anybody else in this thread says, if I have 4 applications open, dashboard hotkey works a lot better for getting to the dictionary than using command+tab and checking if I need to hit tab 1, 2, or 3 times to get to dictionary...
I know command+tab automatically selects your LAST used application, but there are plenty of times I'm switching between many applications, such as Safari, Word, Excel, iChat... and i'm also using the dictionary widget.
I wish there was actually a keyboard shortcut to switch between dictionary and thesaurus... like cmd+1 or cmd+2 when you have the dictionary widget active in the dashboard.
When I get Leopard I'll have to see whether the menu in dictionary is gonna piss me off or not lol.
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On a different note... something that bothered me when I installed TIGER (a couple of years ago).
They changed the address book widget from 10.3.
In 10.3, there was a red button at the bottom of the address book widget... click on that and it opens the address book application... and I believe it would automatically select in the application whatever address card you were looking at in the widget. This meant that if I was looking at somebody's info in the widget and then needed to change/add something, I could just click on the button.
NOW (since 10.4,) if I want to add something to their card after seeing it in the widget, I have to open up address book manually and then find that specific card.
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And while we're at it... I have a suggestion (that I'll send to apple... i actually may have sent it once already).
As you may or not know, if you want to use a widget on the desktop (without dashboard open), you can.
Simply open dashboard and click on the "+" to open the widget tray, drag a widget out of the tray (keep holding, don't let go), and then close the dashboard.
Now, your widget is magically on the desktop.
2 problems with this though.
a. If you open up the dashboard again (lets say you want to use a different widget for a minute, like the.... oh, i don't know... DICTIONARY widget lol), then the widget you had on the desktop now gets absorbed back into the dashboard; close the dashboard and your widget is no longer on your desktop.
If I pull a widget onto the desktop, I usually want it to STAY on the desktop, even if I use another widget.
b. You can only bring a widget onto the desktop if you open up a NEW instance of the widget... I don't see why they don't let you simply use any open widget (i.e. click and hold on the active widget and then close dashboard).