Marc Morales has worked out a system that seems to work along similar lines to the one at Pappmaskin (see previous post). Excellent. You can see Marc musing on categories, developing a system, and then tackling the sidebar menu, all in an astonishingly brief space of time. Others, Marc, have taken months to grapple with what you're addressing in a few days... Herculean efforts!!
I have to say that I am so impressed w/ the look of the category listing in the same style as the blog template that I am sorely tempted to switch. You guys rock!!
My del.icio.us category list is now working in my blogger sidebar, come take a look!
http://marcmorales.com
Thanks for linking to me, I received a lot of help thru your site!