Posting from front-end w/ custom taxonomy

Hello all,

I am trying to create the ability to post from the front-end, I found the following code.. but I have some troubles with custom taxonomy.

Code (non-edited):
http://pastebin.com/VCLcmFLF
(source: http://voodoopress.com/review-of-posting-from-front-end-form)

The whole form seems to work great, but I can’t seem to get my custom taxonomies working.
wp_set_post_terms($pid,array($_POST['director']),’director’,true);

How would I go about doing this?
It displays all the available custom taxonomies but it doesn’t save them to the post.

One more question about custom taxonomies:
If the above should work, and a user creates a new post with a few taxonomies.. However he fails to select already existing ones and thus types/creates a new one. If he then submits his post, will it create a double entry? or will it, when it finds a duplicate, add this to the already existing custom taxonomy?

Thanks in advanced,
Ruud