I have the same thing and it’s even worse because I had additional custom HTML being used such as <li class=\"comic\"> so that I could format that class of links differently, and it’s not showing up at all in the HTML source. It was working fine in the 1.3 version I was running; it only broke when I went to 1.5. See example here, the comics links at right.
I’m trying to use the Links Manager to do this. In wp-admin/link-categories.php, specifically, I have for the comics category, under formatting (before, between, after): <li class=\"comic\"> <br /> </li>
and it doesn’t work. It SHOULD generate that li with the class attribute before that category starts and a br/ between the link title and link, and a /li to wrap the category up.
Step 1: modify links.php, insert this as line 489 (in the middle of the query, just before the FROM line) text_before_link, text_after_link, text_after_all
This has the effect of actually selecting the fields you need. Funny thing that.
Now if you changed that right, go down to your new line 508 which has some nonsense about <li> and n which I thought was really cute. Trash that line or comment it out, whatever, and replace it with $cat['text_before_link'],$cat['text_after_all'],
(that can be one line, but the forum display messes up if I don’t put the line break in)
Now this clears up MOST problems. There’s still the little bug that the link categories manager will NOT allow you to correctly use ‘ or ” in any of the text fields. I had to hack that directly into SQL…
mysql> update wp_linkcategories set text_before_link = '<li class="comic">' where cat_id = 4;