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Mine don't work either, under IE 7 on Windows XP. I just tested by using a text widget and adding some text. They just appear to do nothing (although I'm assuming that redo won't work without undo having worked once anyway).
Works fine for me under Firefox 3 Beta 5, also on Windows XP.
Is the undo / redo functionality only available for text widgets, or is there another way I could test?