Several topics here have addressed problems with adding new categories and new link categories. When trying to do so using WordPress 2.7.1, I kept receiving “an unidentified error has occurred” message and nothing would be added. None of the solutions posted (htaccess, full uninstall/reinstall, etc.) worked for me. This does, however:
In either Firefox or IE, you need to temporarily disable scripting. Turn it on again when you’re done, or a bunch of other stuff won’t work.
It would be nice if this could be ironed out in the next release.