Featured Widget Content Issue

Hi, could use your help. When I select "demo featured content" or my own "featured page content", the featured section displays just fine. However, when I select featured widget content, the white background disappears and the layout is misconfigured. (I have of course, placed widgets in the appropriate widget sections.) http://www.25smartideas.com/ Question #2: Is there a way to get the featured category content to be the shop (i.e. woocommerce) categories rather than blog categories?