WordPress with Confused Categories

Hi all,

I moved my blog minorityblog.wordpress.com to http://www.pmatos.net with wordpress 2.7.1 and then updated it to 2.8.3. Categories in the process got confused. I documented this already here:
http://www.pmatos.net/2009/08/07/blog-moving/

Could you please check this and let me know if this a known problem and how can I go about solving it?

Cheers,

Paulo Matos