Fixed bug with widget and ordering by ID (parameter name changed from id to link_id in 3.2)
The order arguments coming into get_bookmarks() started being matched against a static list of values. To get around this I made copies of wp_list_bookmarks and get_bookmarks and modified them.
Widget will work as is after upgrading.
If you weren't using widgets then replace your call to wp_list_bookmarks() with mylinkorder_list_bookmarks(). It is exactly the same except it calls my version of get_bookmarks(), mylinkorder_get_bookmarks().
The link categories are also matched against a list now, but there is a filter available after that modifies the orderby value.
Update for compatibility with 3.0
Switched way menu item was being added, any permission issues should be fixed
Updated drag and drop to include a placeholder, makes it much easier to see where items will move
Updated styles to fit in with WordPress better
Links and categories now wrapped in localization code, thanks for the tip Florian
Fixed widget checkboxes not holding their value.
Fixed several missing localization strings.
Small bug fix on widget's Category Order option
Significant backend changes, only compatible with 2.8 and above
Transitioned to new Widget API, breaking backwards compatibility in the process
Multiple widgets are now supported
Widget options will have to repopulated
Added more complete widget options, should be able to do just about everything you can in code
Removed taxonomy.php hack, hooking into "get_terms_orderby" filter for category ordering now, no more visiting page after each WordPress update
The PO file has changed and translations will need to be updated
Added "Show Names" option to widget to allow link name to be displayed with "Show Images" is selected.
Added Czech translation (Jan)
Updated for 2.8 compatibility
If your link categories don't show up for ordering your DB user account must have ALTER permissions, the plugin adds columns to store the order
Added a call to $wpdb->show_errors(); to help debug any issues
Translations added and thanks: Spanish (Karin), French (Regis), Italian (Stefano)
Updated for 2.7, now under the the new Links menu
Moved to jQuery for drag and drop
Removed finicky AJAX submission
Translations added and thanks: Russian (Flector), Dutch (Anja)
Keep those translations coming
The plugin has been modified to be fully translated
The widget now has a description
Finally no more taxonomy.php overwriting, well kind of. After you upgrade WordPress visit the My Link Order page and it will perform the edit automatically.