I also need to display links in tweets in the twitter footer widget. I tried the solution above and it's not working for me. I'm using infocus 2.3. Here is the code from my twitter.php file:
function mysite_filter_tweet( $twit ) {
# Remove the preceding 'username: '
$twit = substr(strstr( $twit, ': ' ), 2, strlen( $twit ));
# Specifically for non-English tweets, converts UTF-8 into ISO-8859-1
//$twit = iconv( 'UTF-8', 'ISO-8859-1//TRANSLIT', $twit );
// Convert URLs into hyperlinks
$twit = preg_replace("/(http:\/\/)(.*?)\/([\w\.\/\&\=\?\-\,\:\;\#\_\~\%\+]*)/", "<a target = \"_blank\" href=\"\\">\</a>", $twit);
// Convert usernames (@) into links
$twit = preg_replace("(@([a-zA-Z0-9\_]+))", "<a target = \"_blank\" href=\"http://www.twitter.com/\\1\">\</a>", $twit);
// Convert hash tags (#) to links
$twit = preg_replace('/(^|\s)#(\w+)/', '\1<a target = \"_blank\" href="http://search.twitter.com/search?q=%23\2">#\2</a>', $twit);
return $twit;
}
I uncommented the lines needed to convert the links and added the target tags. While the links do work, the footer widget gets messed up. Basically, it looks like there is a line break after each link type and each link gets a callout bubble bullet. Example:

Each tweet should look like the example page with one callout bubble bullet for each tweet and the tweet text displaying with no line breaks.
Can you help me get this working?