I have the same problem. When I write the post the existing tags and categories come up, but when I look at the front end of the site no tags or categories are listed and when looking at the All Posts page, there’s none there either.
This is not happening on all my WP blogs though they’re all on the same host. It’s happening on http://www.foodaskew.net, http://www.blinkstarmedia.com, and http://www.girlscoutguide.com, and http://www.railroadredux.com
Help Please! All are running the most current version of WP 3.2.1
I’m also very interested in the answer to this… I’m replacing another plugin that stopped working so I’d like to be able to figure out how to have the same functionality.