It took all of about 24 hours for there to be fixes for the unwarranted iGoogle update. Thank goodness. If you’re using FireFox – and you should be – you would just need to install the Greasemonkey plugin and the newly minted Rockmaster’s iGoogle Sidebar Collapse Greasemonkey script.
If you’re still using Internet Explorer (shame on you), you’re stuck with what you’ve got due to the nature of non open-source code.
Let me know if you give it a shot and have no luck, I can probably walk you through it pretty easily.