Index: wp-includes/js/wp-lists.js
===================================================================
--- wp-includes/js/wp-lists.js	(revision 6590)
+++ wp-includes/js/wp-lists.js	(working copy)
@@ -267,25 +267,17 @@
 		list = $(this);
 		e = $(e);
 
-		var old = false; var next = false;
+		var old = false;
 		var _s = { pos: 0, id: 0, oldId: null };
 		if ( 'string' == typeof s ) { s = { what: s }; }
 		s = $.extend(_s, this.wpList.settings, s);
 
 		if ( !e.size() || !s.what ) { return false; }
-		if ( s.oldId ) {
-			old = $('#' + s.what + '-' + s.oldId);
-			next = old.next();
-			old.remove();
-		}
-		if ( s.id ) { $('#' + s.what + '-' + s.id).remove(); }
+		if ( s.oldId ) { old = $('#' + s.what + '-' + s.oldId); }
+		if ( s.id && ( s.id != s.oldId || !old || !old.size() ) ) { $('#' + s.what + '-' + s.id).remove(); }
 
 		if ( old && old.size() ) {
-			if ( next && next.size() ) {
-				next.before(e);
-			} else {
-				list.append(e);
-			}
+			old.replaceWith(e);
 		} else if ( isNaN(s.pos) ) {
 			var ba = 'after';
 			if ( '-' == s.pos.substr(0,1) ) {
@@ -331,8 +323,6 @@
 
 	process: function(el) {
 		var list = this;
-		var bl = function() { currentFormEl = false; };
-		var fo = function() { currentFormEl = this; };
 		var a = $("[@class^=add:" + list.id + ":]", el || null)
 			.filter('form').submit( function() { return list.wpList.add(this); } ).end()
 			.not('form').click( function() { return list.wpList.add(this); } ).each( function() {
@@ -340,16 +330,15 @@
 				var c = wpList.parseClass(this,'add')[2] || addEl.id;
 				if ( !c ) { return; }
 				var forms = []; var ins = [];
-				$('#' + c + ' :input').click( function() { $(this).unbind( 'blur', bl ).unbind( 'focus', fo ).blur( bl ).focus( fo ).focus(); } ).each( function() {
+				$('#' + c + ' :input').focus( function() { currentFormEl = this; } ).blur( function() { currentFormEl = false; } ).each( function() {
 					ins.push(this);
 					$.merge(forms,$(this).parents('form'));
 					forms = $.unique(forms);
 				} );
 				$(forms).submit( function() {
-					var e = currentFormEl;
-					if ( 0 <= $.inArray(e,ins) ) {
+					if ( 0 <= $.inArray(currentFormEl,ins) ) {
 						$(addEl).trigger( 'click' );
-						$(e).focus();
+						$(currentFormEl).focus();
 						return false;
 					}
 				} );
Index: wp-includes/script-loader.php
===================================================================
--- wp-includes/script-loader.php	(revision 6590)
+++ wp-includes/script-loader.php	(working copy)
@@ -60,7 +60,7 @@
 			'delText' => __('Are you sure you want to delete this %thing%?')
 		) );
 
-		$this->add( 'wp-lists', '/wp-includes/js/wp-lists.js', array('jquery'), '20080109' );
+		$this->add( 'wp-lists', '/wp-includes/js/wp-lists.js', array('jquery'), '20080110' );
 		$this->localize( 'wp-lists', 'wpListL10n', array(
 			'url' => get_option( 'siteurl' ) . '/wp-admin/admin-ajax.php'
 		) );
@@ -108,7 +108,7 @@
 			$this->add( 'admin-forms', '/wp-admin/js/forms.js', array('wp-lists'), '20080108' );
 			$this->add( 'xfn', '/wp-admin/js/xfn.js', false, '3517' );
 			$this->add( 'upload', '/wp-admin/js/upload.js', array('jquery'), '20070518' );
-			$this->add( 'post', '/wp-admin/js/post.js', array('suggest', 'jquery-ui-tabs', 'wp-lists'), '20080109' );
+			$this->add( 'post', '/wp-admin/js/post.js', array('suggest', 'jquery-ui-tabs', 'wp-lists'), '20080110' );
 			$this->localize( 'post', 'postL10n', array(
 				'tagsUsed' =>  __('Tags used on this post:'),
 				'add' => attribute_escape(__('Add')),
Index: wp-admin/admin-ajax.php
===================================================================
--- wp-admin/admin-ajax.php	(revision 6590)
+++ wp-admin/admin-ajax.php	(working copy)
@@ -173,7 +173,7 @@
 		if ( $parent ) // Do these all at once in a second
 			continue;
 		$category = get_category( $cat_id );
-		$category->_is_checked = true;
+		$checked_categories[] = $cat_id;
 		ob_start();
 			dropdown_categories( 0, $category );
 		$data = ob_get_contents();
Index: wp-admin/wp-admin.css
===================================================================
--- wp-admin/wp-admin.css	(revision 6590)
+++ wp-admin/wp-admin.css	(working copy)
@@ -1090,10 +1090,6 @@
 	background: url(images/xit.gif) no-repeat -10px 0;
 }
 
-#newtag {
-	color: #999;
-}
-
 .howto {
 	font-style: italic;
 	display: block;
@@ -1284,3 +1280,4 @@
 /* Global classes */
 .wp-hidden-children .wp-hidden-child { display: none; }
 .ui-tabs-hide { display: none; }
+.form-input-tip { color: #999; }
Index: wp-admin/includes/template.php
===================================================================
--- wp-admin/includes/template.php	(revision 6590)
+++ wp-admin/includes/template.php	(working copy)
@@ -144,7 +144,7 @@
 		$root = array(
 			'children' => get_nested_categories( $default, $parent->term_id ),
 			'cat_ID' => $parent->term_id,
-			'checked' => isset($parent->_is_checked) && $parent->_is_checked,
+			'checked' => in_array( $parent->term_id, $checked_categories ),
 			'cat_name' => get_the_category_by_ID( $parent->term_id )
 		);
 		$result = array( $parent->term_id => $root );
Index: wp-admin/js/post.js
===================================================================
--- wp-admin/js/post.js	(revision 6590)
+++ wp-admin/js/post.js	(working copy)
@@ -69,20 +69,16 @@
 	jQuery('#tags-input').hide();
 	tag_update_quickclicks();
 	// add the quickadd form
-	jQuery('#jaxtag').prepend('<span id="ajaxtag"><input type="text" name="newtag" id="newtag" size="16" autocomplete="off" value="'+postL10n.addTag+'" /><input type="button" class="button" id="tagadd" value="' + postL10n.add + '"/><input type="hidden"/><input type="hidden"/><span class="howto">'+postL10n.separate+'</span></span>');
+	jQuery('#jaxtag').prepend('<span id="ajaxtag"><input type="text" name="newtag" id="newtag" class="form-input-tip" size="16" autocomplete="off" value="'+postL10n.addTag+'" /><input type="button" class="button" id="tagadd" value="' + postL10n.add + '"/><input type="hidden"/><input type="hidden"/><span class="howto">'+postL10n.separate+'</span></span>');
 	jQuery('#tagadd').click( tag_flush_to_text );
 //	jQuery('#newtag').keydown( tag_press_key );
 	jQuery('#newtag').focus(function() {
-		if ( this.value == postL10n.addTag ) {
-			this.value = '';
-			this.style.color = '#333';
-		}
+		if ( this.value == postL10n.addTag )
+			jQuery(this).val( '' ).removeClass( 'form-input-tip' );
 	});
 	jQuery('#newtag').blur(function() {
-		if ( this.value == '' ) {
-			this.value = postL10n.addTag;
-			this.style.color = '#999'
-		}
+		if ( this.value == '' )
+			jQuery(this).val( postL10n.addTag ).addClass( 'form-input-tip' );
 	});
 
 	// auto-suggest stuff
@@ -95,14 +91,25 @@
 	var categoryTabs =jQuery('#category-tabs').tabs();
 
 	// Ajax Cat
-	var newCat = jQuery('#newcat').one( 'focus', function() { jQuery(this).val( '' ) } );
+	var newCat = jQuery('#newcat').one( 'focus', function() { jQuery(this).val( '' ).removeClass( 'form-input-tip' ) } );
 	jQuery('#category-add-sumbit').click( function() { newCat.focus(); } );
+	var newCatParent = false;
+	var newCatParentOption = false;
 	var catAddAfter = function( r, s ) {
+		if ( !newCatParent ) newCatParent = jQuery('#newcat_parent');
+		if ( !newCatParentOption ) newCatParentOption = newCatParent.find( 'option[value=-1]' );
 		jQuery(s.what + ' response_data', r).each( function() {
 			var t = jQuery(jQuery(this).text());
-			var o = jQuery( '<option value="' +  parseInt( t.find(':input').val(), 10 ) + '"></option>' );
-			o.text( jQuery.trim( t.text() ) );
-			jQuery('#newcat_parent').prepend( o );
+			t.find( 'label' ).each( function() {
+				var th = jQuery(this);
+				var id = th.find('input').val();
+				if ( newCatParent.find( 'option[value=' + id + ']' ).size() )
+					return;
+				var name = jQuery.trim( th.text() );
+				var o = jQuery( '<option value="' +  parseInt( id, 10 ) + '"></option>' ).text( name );
+				newCatParent.prepend( o );
+				newCatParentOption.attr( 'selected', true );
+			} );
 		} );
 	};
 	jQuery('#categorychecklist').wpList( {
Index: wp-admin/edit-form-advanced.php
===================================================================
--- wp-admin/edit-form-advanced.php	(revision 6590)
+++ wp-admin/edit-form-advanced.php	(working copy)
@@ -125,7 +125,7 @@
 <div id="category-adder" class="wp-hidden-children">
 	<h4><a id="category-add-toggle" href="#category-add"><?php _e( '+ Add New Category' ); ?></a></h4>
 	<p id="category-add" class="wp-hidden-child">
-		<input type="text" name="newcat" id="newcat" class="form-required" value="<?php _e( 'New category name' ); ?>" />
+		<input type="text" name="newcat" id="newcat" class="form-required form-input-tip" value="<?php _e( 'New category name' ); ?>" />
 		<?php wp_dropdown_categories( array( 'hide_empty' => 0, 'name' => 'newcat_parent', 'orderby' => 'name', 'hierarchical' => 1, 'show_option_none' => __('Parent category') ) ); ?>
 		<a id="category-add-sumbit" class="add:categorychecklist:categorydiv button" href="<?php echo wp_nonce_url( '', 'add-category' ); ?>"><?php _e( 'Add' ); ?></a>
 		<span id="category-ajax-response"></span>