Categories are NOT WORKING, come on!  I even forced an upgrade which I must say went as smooth as butter, great job WP people.

* The “real” fix is to make your categories, make your post, then put your post into that category!  If your category doesn’t have a post in it WordPress is smart enough not to even show it…brilliant huh?  It’s that simple!  WOW I have egg on my face :-)