This plugin creates two widgets:
This is similar to what newegg.com uses, where you can select multiple categories, and it will only show posts belonging to all the categories you select, and such categories can be narrowed down by selecting their subcategories.
You can select the tags you want to search for, and it will only show posts that have all of the tags you selected.
After upgrading from 2.1 to 2.2 it is highly recommended that you deactivate the plugin and then re-activate it. Unfortunately WordPress 3.1 no longer calls register_activation_hook when the plugins are upgraded, so this may be necessary, otherwise you may not see all your categories.
When using version 3.2 or above, and excluding categories, the display order may or may not be mixed up when you exclude a parent category.