Using the following as a guide and some discussion with squentin on the IRC, I have tweaked some of my desktop widgets to reflect the changes

Quoteadd hover_layout_pos option to control position of hover_layout popups

-each coordinate can be given using a sum of number of pixels or
proportion of the widget size (w), screen size (s), or popup size (p)
-the default reference point is the upper right of the widget, unless the
position is preceded with "abs:" in which case the reference point is 0,0
-if the position is only in w or s, a "smart alignment" of the popup is done:
the popup will be centered, or left aligned if on the left border (0w or 0s),
or right aligned if on the right border (1w or 1s)
examples :
".5w x w" : center bottom of widget, equivalent to ".5w-.5p x w-p"
"abs: .5s x 0" : center top of screen, equivalent to "abs: .5s-.5p x 0"
".5w x w-p-10" : 10 pixels above center bottom of widget
example of use :
Cover(hover_delay=1, hover_layout_pos=.5w x w, hover_layout=some_layout)

This code

[nowplaying_screenlet_vastone2]
Type=D
DefaultFont=8
Window        = size=240x240,transparent=1
VBmain= Artist(xalign=.5) Album(xalign=.5) Title(xalign=.5) HBTime _Cover(forceratio=1,hover_delay=1,hover_layout_pos=.5w x w,hover_layout=nowplaying_screenlet2_popup)
HBTime        = Length(markup="$length",initsize="XX:XX",xalign=0) _TimeBar(direct_mode=1) PlayingTime(markup="%s",initsize="XX:XX",xalign=1)


[nowplaying_screenlet2_popup]
Window = transparent=1
HBmain= 12Prev 12Play 12Next 12VolumeIcon 12BMSettings
BMSettings = (icon=gtk-preferences,size=menu) MainMenuItem PSortItem SMLibrary LayoutItem QueueItem PFilterItem SeparatorMenuItem01 MenuItem14(command=OpenPref,label=_"Settings",icon="gtk-preferences") MenuItem05(command=Quit,label=_"Quit",icon="gtk-quit")
SMLibrary = (label=_"Library") MenuItem00(command="RunPerlCode(::ChooseAddPath(0,1))",label=_"Add Music",icon="gtk-add") MenuItem32(command="RunPerlCode(::IdleScan)",label=_"Rescan Collection",icon="gtk-refresh")
VolumeScroll = VolumeIcon


Has the timer at the top and the pop ups at the bottom



This one moves the time to the bottom and adjust the popup to go below the timebar


[nowplaying_screenlet2 VastOne Now]
Type=D
DefaultFont=8
Window = size=240x240,transparent=1
VBmain= Artist(xalign=.5) Album(xalign=.5) Title(xalign=.5) _Cover(forceratio=1,hover_delay=1,hover_layout_pos=  .5w x w-p+60,hover_layout=nowplaying_screenlet2_popup) _HBTime
HBTime = Length(markup="$length",initsize="XX:XX",xalign=0) _TimeSlider(direct_mode=1) PlayingTime(markup="%s",initsize="XX:XX",xalign=1)

[nowplaying_screenlet2_popup]
Window = transparent=1
HBmain= 12Prev 12Play 12Next 12VolumeIcon 12BMSettings
BMSettings = (icon=gtk-preferences,size=menu) MainMenuItem PSortItem SMLibrary LayoutItem QueueItem PFilterItem SeparatorMenuItem01 MenuItem14(command=OpenPref,label=_"Settings",icon="gtk-preferences") MenuItem05(command=Quit,label=_"Quit",icon="gtk-quit")
SMLibrary = (label=_"Library") MenuItem00(command="RunPerlCode(::ChooseAddPath(0,1))",label=_"Add Music",icon="gtk-add") MenuItem32(command="RunPerlCode(::IdleScan)",label=_"Rescan Collection",icon="gtk-refresh")
VolumeScroll = VolumeIcon




Some notes from IRC

.5w x w-p-10 would move it up 10 pixels

.5w x w-p+35 would move it down 35 pixels

.5w x w+0 effectively disables the smart-align