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again, sorry, but what is your actual question?
On my sidebar, recent posts section, why does my latest post title show in the list?
I think that is your question, but you have not made it clear……
although if it is, it is your latest post and your widget is looking for the title of your recent posts, so really it is supposed to do that, my sites with wordpress do that
also you code shows that if you have the widgets then that should take over from the rest of your php code (or roughly to that account) if you do not want the wigets, you can delete the PHP related to that which should leave your with the categories & archives