1. Go to Design/Page Elements, and add two Feed widgets with these URLs, in this order:

http://YOURBLOG.blogspot.com/feeds/comments/default

http://YOURBLOG.blogspot.com/feeds/posts/default


2. Go to Design/Edit HTML and replace these lines of code:

<b:widget id='Feed1' locked='false' title='Recent Posts' type='Feed'/>
<b:widget id='Feed2' locked='false' title='Recent Comments' type='Feed'/>

by:


<b:widget id='Feed1' locked='false' title='Recent Posts' type='Feed'>
<b:includable id='main'>
<ul><li class='recent_posts'>
<h2><img alt='Recent Posts' src='http://2.bp.blogspot.com/_8aZXeWtZzQY/TUm--WzWCoI/AAAAAAAABYA/ntLxRC_uVIE/s000/recent_posts.jpg'/></h2>
<div class='widget-content'>
<ul expr:id='data:widget.instanceId + &quot;_feedItemListDisplay&quot;'>
<b:loop values='data:feedData.items' var='i'>
<li>
<span class='item-title'>
<a expr:href='data:i.alternate.href'>
<data:i.title/>
</a>
</span>
<b:if cond='data:showItemDate'>
<b:if cond='data:i.str_published != &quot;&quot;'>
<span class='item-date'>
 - <data:i.str_published/>
</span>
</b:if>
</b:if>
<b:if cond='data:showItemAuthor'>
<b:if cond='data:i.author != &quot;&quot;'>
<span class='item-author'>
 - <data:i.author/>
</span>
</b:if>
</b:if>
</li>
</b:loop>
</ul>
</div>
</li></ul>
</b:includable>
</b:widget>
<b:widget id='Feed2' locked='false' title='Recent Comments' type='Feed'>
<b:includable id='main'>
<ul><li class='recent_comments'>
<h2><img alt='Recent Comments' src='http://2.bp.blogspot.com/_8aZXeWtZzQY/TUm--qdRO3I/AAAAAAAABYE/PyEhb_tGCbw/s000/recent_comments.jpg'/></h2>
<div class='widget-content'>
<ul expr:id='data:widget.instanceId + &quot;_feedItemListDisplay&quot;'>
<b:loop values='data:feedData.items' var='i'>
<li>
<a expr:href='data:i.alternate.href'>
<b:if cond='data:showItemAuthor'>
<b:if cond='data:i.author != &quot;&quot;'>
<span class='item-author'>
<data:i.author/> said:
</span>
</b:if>
</b:if>
<span class='item-title'>
<data:i.title/>
</span>
<b:if cond='data:showItemDate'>
<b:if cond='data:i.str_published != &quot;&quot;'>
<span class='item-date'>
 on <data:i.str_published/>
</span>
</b:if>
</b:if>
</a> 
</li>
</b:loop>
</ul>

</div>
</li></ul>
</b:includable>
</b:widget>