Twitter Peep

Twitter Peep is a wordpress widget used to display feeds in a nice and elegant way.
It can properly handles twitter feeds, including parsing @username, #hashtag, and URLs into links.

It supports displaying profiles images, and even lets you control whether to display the time and date of a tweet or how log ago it happened (about 5 hours ago, etc).
It also has a powerful caching mechanism to cache tweets resulting into fast loading.

You can view a demo here