I think I've found a bug... WP 2.6
Here's what happens...
I create a new CHILD category on the write post editor for a new post... no drama.
I then go to edit another previous post so I can assign it to the new child category I've just created. I find the parent category, but can't see the new child category indented below the parent category, as they should be. Hmmm? Now it wouldn't be unrealistic to believe the child category is gone... but i'm an inquisitive person so I scroll down the whole list of category checkboxes and find the child category sitting there loud and proud like a parent category! What the? I want to assign the post to that category as a child not as a parent! I check the box anyway and re-save the post. Sure enough the child category now has found it's place as a child indented below it's parent.
What's the problem?... the child shouldn't be foolin' rednecks like me that it's a parent! Can it assume it's rightful postion at the start rather than after it's been delegated by a post.
Thanks, I'm off to bed