smithaa02 - 4:17 pm on Oct 26, 2011 (gmt 0)
Would highly suggest that the breadcrumbs not be dynamic (in that they include a back/next reference).
A strict hierarchy is best (in fact with google everything with your website should be sorted in an hierarchical fashion as IMO this is how google thinks). Perhaps Widgets Home >> Red Widgets (then perhaps floated to the right (previous category | next category).
Google actually does like breadcrumbs and gives a guide of how to add rich snippets to googlebot can officially recognize them:
Even without rich snippets, I've add luck with google crawling my breadcrumbs and then displaying my breadcrumbs in the SERPs (so a little bonus exposure in the SERP's for good breadcrumbs). I suspect good breadcrumbs can help google theme and organize your website as well. It's not a 100% consistent that they will show my breadcrumb, so I'm not exactly sure how this works though...