Grouped Links Widget can use any number of widget instances to group links by their associated link categories. This adds a bit more CMS functionality to WordPress.
If the blogroll is grouped into link categories and each category contains internal tag references, then you can flexibly group link categories and put these link groups into your sitebar(s). This, of course, works with traditional external links put in a blogroll too.
Initially the number of widget instances is limited to 8, but can be easily increased by editing the source code. However, in most cases 8 link groups (=widget instances) should be sufficient.
Each group of link categories can be sorted by name acending or decending. If simple sorting doesn't fit to your desired order to be appear in the sidebar, then create more than one link group and place them in the sidebar as you wish.
Grouped Links Widget is a simple widget, it mainly uses wp_list_bookmarks. If you want to add more functionality, don't hesitate to modify the code ;-)
Grouped Links Widget's homepage: http://groupedlinks.wordpress.com/




