Watch the demo with wonder and awe.
Downloaded the latest GWT Designer (free trial).
Installed it in a completely clean Eclipse env (no other plugins, v3.2, latest GWT jars on the class path)
Followed the sequence in the demo where a new MyComposite was created, the user clicked Choose Widget, selected their MyComposite and clicked back on the main drawing screen (into ImageViewer I believe) and was able to drop the custom composite in.
When I follow the exact steps, I do not get the indicator that there is a widget ready to be dropped -- and then nothing happened.