I found and installed this plug-in here: http://wpmudevorg.wordpress.com/project/Most-recent-posts---updated
When there is a new post is DELETED, shouldn't the listing be updated and the post now is gone? When you delete a post, it's still on the list which is weird. How can you update it?
And is it possible to show the latest last posts (not just by username).
So if a user had posted 2 new posts at about the same time, it'll show both instead of just 1 item.
Sorry again, and will it be possible to include every blog (site wide) instead of just only the "public" ones.
You'd have to take to the plugin author directly about additional features. (Note the comment bit on the download page.)
To do every blog (which defeats the purpose of making a blog as public or private by the way) in that list, just remove the portion of the code that checks against 'public.