Ok, so I was having probs with the blogroll/categories issue. (Click my member link to see my trouble posts.) I did a little more searching and found this article. I really wish I had seen this first!
It answered one of my major questions and gave other nice info about 2.1 as well. Here is a tidbit that I found useful. Be sure to read the entire article at http://www.technosailor.com/10-things-you-should-know-about-wordpress-21/
"Merging of Links and Categories - ... In previous versions of WordPress, links and categories were handled as two separate entities. Links were seen as a thing used solely to power a blogroll and Categories were seen as a way to solely compartmentalize posts. In WordPress 2.1 ... the Categories table is now prepopulated with a Blogroll category and all links are assigned, by default, to the blogroll category."