Does the plugin work on WordPress Multisite?

Yes, but only if you activate the plugin on a per site base. Network Activation is not supported.
Extra note: It seems that sometimes for some reason DW does not show up on individual sites within a WP Network without a network activation. You can use Multisite Plugin Manager to overcome this problem.

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Dynamic Widgets

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download Latest version: 1.5.10
download Development version 1.5.10