Yahoo! has launched an updated version of the Yahoo! Widget Engine and gallery. Yahoo! Widget Engine 4.5 has the same look and feel on your desktop as version 4.0, but there are some changes in the way widgets are created and organized.

First, Yahoo! has retooled its online widget gallery to give you more information about what each widget does. Users now also have a quick view of the most downloaded, highest rated and newest widgets, and can share Widgets directly with friends on IM, email, a Yahoo! Widget badge, del.icio.us, Digg and Reddit.

Second, there's now support for Flash and HTML based widget design. Yahoo! has also teamed up with the NBA to vote on All Stars, RockYou to create and watch slideshows on the desktop, and the Netvibes UWA will now be available as a Yahoo! Desktop Widget from the Netvibes Ecosystem. And if you still aren't satisfied, Yahoo! Finance has also improved their powerful stock Widget.

Check out a screeenshot of the new RockYou Yahoo! Widget after the jump.