Cannot Create new category for posts or links

afte looking around the support pages for a few days, I just cannot find any information that may help me with my current problem. I just cannot seem to add a NEW category to either my posts or my links. please help. i only have 2 categories so far for both posts and only a few for links. before installing the Category Overload plugin, i couldnt even delete any of the categories from within the category admin tool. thats has since been corrected with this “hack”

FWIW, This is a CRITICAL issue in my mind that this seems to be such a problem for so many people that still hasnt been resolved. Categories are so basic in nature to blogging that it would be helpful if this was fixed in the next release, beyond tags, beyond any additional fucntionality.

anywa, check out the site http://www.labruinbear.com and let me know if you can see what the problem is in anyway.