I've set my permalink structure up like this:
http://www.domain.com/%category%/%postname%
The support documentation says that this will list subcategories as well, but it wasn't working. That was version 2.1, so I upgraded to 2.1.3 and the problem is still persisting.
For instance, a category with subcategories like this:
because
-I
--Said
---So
SHOULD look like this:
http://www.domain.com/because/I/said/so/post-name
but all I'm getting is this:
http://www.domain.com/because/post-name