There is a fantastic guide on how to setup your google reader feed as a widget on your blogsite at Tales of the Aggronaut. Unfortunately for wordpress.com users (including me), you are not allowed to use javascript in the text widget boxes. However, I have found a workaround which so far seems to be working really well.
Follow the instructions (linked above) up to ‘Making the Bundle Clip do what we need’ instead of creating a new bundle clip, click add a link to your website or blog. This will open a new window which on the right hand side of the page will have an RSS feed link. Open your widget page on your blogs, use the RSS widget and paste the feed link in. It should work fine.
OldStarShadow 
Ah, thanks! I’ve been wondering how you did it but my google-fu was weak and didn’t give me the right answers. Of course, I could have just asked you directly but that would be smart!
Anyway, since I am tinkering with my blog I will add this on the list of things to test. Thanks again! 🙂
Really glad it was useful!