Hi @billiets,
Widgets must be located in `/wp-content/blogs.dir/1/files/bpmh-widgets/` as you’re using wpmu .. Is that the case ?
http://buddypress.org/community/groups/bp-my-home/forum/topic/error-activating-widgets/
yes i am using wpmu
that directory wasn’t there soo i created it and copied the widgets there and that did not work 
1 is the main sites blog id where i am trying to use the plugin with my bp
very strange.. Did you copy the widgets folder (do not copy the widgets zip archives) ? Did you enable the widgets from bpmh manager in network admin ? Is there a message in the siteurl/members/name/my-home page ? What about the error log ?
Look, i’ve just installed WordPress MU 2.9.2 then i upgraded till version 3.2.1, installed BuddyPress 1.2.10 and then BP My Home.
1/ just after the activation of the plugin the dir were automatically created in the correct folder > `/wp-content/blogs.dir/1/files/bpmh-widgets/`
2/ i went to BPMH Manager in the BuddyPress Menu of network admin, then i installed one by one all the widgets. this is what i had in the file system :

3/ I activated each widgets in the BPMH Manager. Then i went on my profile page (siteurl/members/myname/my-home) and the widgets are displayed !!!
So i don’t know what’s happening on your config… It’s a mystery !?!
part of my problem with nothing showing up in the members section was the template…
i canged to default template and it show’s me…
“Admin forgot to activate at least 1 widget, if i were you i would contact him to make him move !”
i’m not getting a widgets folder and it is in stalling in…
wp-content/plugins/bp-my-home/includes
and within that folder is…
FOLDER: templates
bp-my-home-admin.php
bp-my-home-auto-bkmk.php
etc..
i don’t even have
1/files/bpmh-widgets/
and there isn’t /bpmh-widgets/ anyplace at all anywhere
the bookmark links show up on all of my blogs on the pages tho lol
i want this plugin soo much… will make a nice feature on my community 
If you have this message “Admin forgot to activate at least 1 widget, if i were you i would contact him to make him move !” Then you just have to activate the widgets from BPMH Manger in network_admin backend…
Just make sure you have `/wp-content/blogs.dir/1/files/bpmh-widgets/` full of the widgets folder as shown in the pic above. (bpmh-bkmks, bpmh-comments…) If not just unzip in the zip archives of `/wp-content/plugins/bp-my-home/zip-widgets/` in `/wp-content/blogs.dir/1/files/bpmh-widgets/`
Thanks, I also had the same problem. For some reason the script could not unzip the archives. Until I found this post, I had no idea where the plugins should go. It was frustrating a great deal, as, like the other user, I find the bp-my-home fantastic.
Just a note, an older version of the plugin could do it, but not the latest. Perhaps you need to check your zip functions.