This is a screen shot of my desktop.
The weather is scraped from Yahoo, the weather code is then stored in a variable. If the weather code matches a certain condition, I copy / overwrite a /tmp/weathericon.png file. I then use an image geeklet to pull this image every 30 minutes.
The icons I used are called Meteocons via Alessio Atzeni.
Check out my Geeklet Submissions
I have Zipped all the geeklets and shell scripts I am using for my setup and changed the extension to .glet so it can be uploaded here. Simply change the extension to .zip and unzip the contents. Enjoy.