I just saw that Adobe has posted a fix for the issue that is preventing the use of Widgets in Adobe Captivate 4 if you have Flash Player 11 installed on your system.
Unless you apply this hotfix you will not be able to use any widgets when developing in Adobe Captivate 4.
Download the file from here – https://www.cpguru.com/otherresources/AdobeCaptivate4Fix.zip
Once the file is downloaded follow the instructions below:
1. Close Adobe Captivate 4 if it is running.
2. Extract the downloaded file to your desktop.
3. Go to the Adobe Captivate 4 program installation directory. Usually it will be “c:\Program Files\Adobe\Adobe Captivate 4″.
4. Rename the file “AdobeCaptivate.exe” to “AdobeCaptivate_old.exe”.
5. Copy the extracted “AdobeCaptivate.exe” from step 2 to the Captivate program directory.
This should take care of the problem so open Captivate 4 again and try inserting a widget (any AS2 / AS3 widget will do).