diff --git a/wp-admin/edit-form-advanced-tabs.php b/wp-admin/edit-form-advanced-tabs.php
new file mode 100644
index 000000000..34acad882
--- /dev/null
+++ b/wp-admin/edit-form-advanced-tabs.php
@@ -0,0 +1,28 @@
+<?php
+
+require('admin.php' );
+
+$post_ID = (int) $_GET['post'];
+
+if ( $post_ID ? !current_user_can( 'edit_post', $post_ID ) : !current_user_can( 'edit_posts' ) )
+	die();
+	
+ob_start();
+$popular_ids = wp_popular_terms_checklist('category');
+ob_end_clean();
+
+?>
+
+
+	<ul id="categorychecklist" class="list:category categorychecklist form-no-clear">
+		<?php dropdown_categories( 0, 0, $popular_ids ); ?>
+	</ul>
+
+
+	<div id="category-add-hidden" style="display: none;">
+		<input type="text" name="newcat" id="newcat" class="form-required form-input-tip" value="<?php _e( 'New category name' ); ?>" tabindex="3" />
+		<?php wp_dropdown_categories( array( 'hide_empty' => 0, 'name' => 'newcat_parent', 'orderby' => 'name', 'hierarchical' => 1, 'show_option_none' => __('Parent category'), 'tab_index' => 3 ) ); ?>
+		<input type="button" id="category-add-sumbit" class="add:categorychecklist:category-add button" value="<?php _e( 'Add' ); ?>" tabindex="3" />
+		<?php wp_nonce_field( 'add-category', '_ajax_nonce', false ); ?>
+		<span id="category-ajax-response"></span>
+	</div>
diff --git a/wp-admin/edit-form-advanced.php b/wp-admin/edit-form-advanced.php
index 7bafd08e6..d6d059428 100644
--- a/wp-admin/edit-form-advanced.php
+++ b/wp-admin/edit-form-advanced.php
@@ -219,29 +219,17 @@ endif; ?>
 
 <div id="category-adder" class="wp-hidden-children">
 	<h4><a id="category-add-toggle" href="#category-add" class="hide-if-no-js" tabindex="3"><?php _e( '+ Add New Category' ); ?></a></h4>
-	<p id="category-add" class="wp-hidden-child">
-		<input type="text" name="newcat" id="newcat" class="form-required form-input-tip" value="<?php _e( 'New category name' ); ?>" tabindex="3" />
-		<?php wp_dropdown_categories( array( 'hide_empty' => 0, 'name' => 'newcat_parent', 'orderby' => 'name', 'hierarchical' => 1, 'show_option_none' => __('Parent category'), 'tab_index' => 3 ) ); ?>
-		<input type="button" id="category-add-sumbit" class="add:categorychecklist:category-add button" value="<?php _e( 'Add' ); ?>" tabindex="3" />
-		<?php wp_nonce_field( 'add-category', '_ajax_nonce', false ); ?>
-		<span id="category-ajax-response"></span>
-	</p>
+	<p id="category-add" class="wp-hidden-child"></p>
 </div>
 
 <ul id="category-tabs">
-	<li class="ui-tabs-selected"><a href="#categories-all" tabindex="3"><?php _e( 'All Categories' ); ?></a></li>
-	<li class="wp-no-js-hidden"><a href="#categories-pop" tabindex="3"><?php _e( 'Most Used' ); ?></a></li>
+	<li class="ui-tabs-selected"><a href="#categories-pop" tabindex="3"><?php _e( 'Most Used' ); ?></a></li>
+	<li class="wp-no-js-hidden"><a id="category-tabs-all" href="edit-form-advanced-tabs.php?post=<?php echo $post_ID; ?>" tabindex="3"><?php _e( 'All Categories' ); ?></a></li>
 </ul>
 
 <div id="categories-pop" class="ui-tabs-panel" style="display: none;">
 	<ul id="categorychecklist-pop" class="categorychecklist form-no-clear" >
-		<?php $popular_ids = wp_popular_terms_checklist('category'); ?>
-	</ul>
-</div>
-
-<div id="categories-all" class="ui-tabs-panel">
-	<ul id="categorychecklist" class="list:category categorychecklist form-no-clear">
-		<?php dropdown_categories( 0, 0, $popular_ids ); ?>
+		<?php $popular_ids = wp_popular_terms_checklist('category'); // If we up the # here we have to do so in edit-form-advanced-tabs.php too ?>
 	</ul>
 </div>
 
diff --git a/wp-admin/images/loading.gif b/wp-admin/images/loading.gif
new file mode 100644
index 000000000..85b99d46b
Binary files /dev/null and b/wp-admin/images/loading.gif differ
diff --git a/wp-admin/includes/template.php b/wp-admin/includes/template.php
index c34d4fea3..f99e810ce 100644
--- a/wp-admin/includes/template.php
+++ b/wp-admin/includes/template.php
@@ -194,6 +194,8 @@ function dropdown_categories( $default = 0, $parent = 0, $popular_ids = array()
 }
 
 function wp_popular_terms_checklist( $taxonomy, $default = 0, $number = 10 ) {
+	global $checked_categories;
+	wp_set_checked_post_categories( $default );
 	$categories = get_terms( $taxonomy, array( 'orderby' => 'count', 'order' => 'DESC', 'number' => $number ) );
 
 	$popular_ids = array();
@@ -204,7 +206,7 @@ function wp_popular_terms_checklist( $taxonomy, $default = 0, $number = 10 ) {
 
 		<li id="<?php echo $id; ?>" class="popular-category">
 			<label class="selectit" for="in-<?php echo $id; ?>">
-			<input id="in-<?php echo $id; ?>" type="checkbox" value="<?php echo (int) $category->term_id; ?>" />
+			<input id="in-<?php echo $id; ?>" type="checkbox" value="<?php echo (int) $category->term_id; ?>" name="post_category[]" <?php checked( in_array( $category->term_id, $checked_categories ), true ); ?> />
 				<?php echo wp_specialchars( apply_filters( 'the_category', $category->name ) ); ?>
 			</label>
 		</li>
diff --git a/wp-admin/js/post.js b/wp-admin/js/post.js
index 18c9706fa..790cfa4a3 100644
--- a/wp-admin/js/post.js
+++ b/wp-admin/js/post.js
@@ -100,60 +100,79 @@ jQuery(document).ready( function() {
 	jQuery('#newtag').keypress( tag_press_key );
 
 	// category tabs
-	var categoryTabs =jQuery('#category-tabs').tabs();
+	var newCatFocus = false;
+	var categoryTabs =jQuery('#category-tabs').tabs( {
+		cache: true,
+		show: function(ui) {
+			if ( 'category-tabs-all' != ui.id ) { return; } // only do this for the all tab
+			var adder = jQuery('#category-add-hidden');
 
-	// Ajax Cat
-	var newCat = jQuery('#newcat').one( 'focus', function() { jQuery(this).val( '' ).removeClass( 'form-input-tip' ) } );
-	jQuery('#category-add-sumbit').click( function() { newCat.focus(); } );
-	var newCatParent = false;
-	var newCatParentOption = false;
-	var noSyncChecks = false; // prophylactic. necessary?
-	var syncChecks = function() {
-		if ( noSyncChecks )
-			return;
-		noSyncChecks = true;
-		var th = jQuery(this);
-		var c = th.is(':checked');
-		var id = th.val().toString();
-		jQuery('#in-category-' + id + ', #in-popular-category-' + id).attr( 'checked', c );
-		noSyncChecks = false;
-	};
-	var catAddBefore = function( s ) {
-		s.data += '&' + jQuery( '#categorychecklist :checked' ).serialize();
-		return s;
-	};
-	var catAddAfter = function( r, s ) {
-		if ( !newCatParent ) newCatParent = jQuery('#newcat_parent');
-		if ( !newCatParentOption ) newCatParentOption = newCatParent.find( 'option[value=-1]' );
-		jQuery(s.what + ' response_data', r).each( function() {
-			var t = jQuery(jQuery(this).text());
-			t.find( 'label' ).each( function() {
-				var th = jQuery(this);
-				var val = th.find('input').val();
-				var id = th.find('input')[0].id
-				jQuery('#' + id).change( syncChecks );
-				if ( newCatParent.find( 'option[value=' + val + ']' ).size() )
+			if ( !adder.size() ) { return; } // we're already done
+
+			// Put HTML in proper place and set up the wp-lists etc
+			jQuery('#category-add').html( adder.remove().html() );
+
+			// Ajax Cat
+			var newCat = jQuery('#newcat').one( 'focus', function() { jQuery(this).val( '' ).removeClass( 'form-input-tip' ) } );
+			jQuery('#category-add-sumbit').click( function() { newCat.focus(); } );
+			var newCatParent = false;
+			var newCatParentOption = false;
+			var noSyncChecks = false; // prophylactic. necessary?
+			var syncChecks = function() {
+				if ( noSyncChecks )
 					return;
-				var name = jQuery.trim( th.text() );
-				var o = jQuery( '<option value="' +  parseInt( val, 10 ) + '"></option>' ).text( name );
-				newCatParent.prepend( o );
+				noSyncChecks = true;
+				var th = jQuery(this);
+				var c = th.is(':checked');
+				var id = th.val().toString();
+				jQuery('#in-category-' + id + ', #in-popular-category-' + id).attr( 'checked', c );
+				noSyncChecks = false;
+			};
+			var catAddBefore = function( s ) {
+				s.data += '&' + jQuery( '#categorychecklist :checked' ).serialize();
+				return s;
+			};
+			var catAddAfter = function( r, s ) {
+				if ( !newCatParent ) newCatParent = jQuery('#newcat_parent');
+				if ( !newCatParentOption ) newCatParentOption = newCatParent.find( 'option[value=-1]' );
+				jQuery(s.what + ' response_data', r).each( function() {
+					var t = jQuery(jQuery(this).text());
+					t.find( 'label' ).each( function() {
+						var th = jQuery(this);
+						var val = th.find('input').val();
+						var id = th.find('input')[0].id
+						jQuery('#' + id).change( syncChecks );
+						if ( newCatParent.find( 'option[value=' + val + ']' ).size() )
+							return;
+						var name = jQuery.trim( th.text() );
+						var o = jQuery( '<option value="' +  parseInt( val, 10 ) + '"></option>' ).text( name );
+						newCatParent.prepend( o );
+					} );
+					newCatParentOption.attr( 'selected', true );
+				} );
+			};
+			jQuery('#categorychecklist').wpList( {
+				alt: '',
+				response: 'category-ajax-response',
+				addBefore: catAddBefore,
+				addAfter: catAddAfter
 			} );
-			newCatParentOption.attr( 'selected', true );
-		} );
-	};
-	jQuery('#categorychecklist').wpList( {
-		alt: '',
-		response: 'category-ajax-response',
-		addBefore: catAddBefore,
-		addAfter: catAddAfter
+			jQuery('.categorychecklist .popular-category :checkbox').change( syncChecks ).filter( ':checked' ).change();
+		
+			if ( newCatFocus ) {
+				jQuery('#newcat').focus();
+				newCatFocus = false;
+			}
+		}
 	} );
+
 	jQuery('#category-add-toggle').click( function() {
 		jQuery(this).parents('div:first').toggleClass( 'wp-hidden-children' );
-		categoryTabs.tabsClick( 1 );
+		categoryTabs.tabsClick( 2 );
 		jQuery('#newcat').focus();
+		newCatFocus = true;
 		return false;
 	} );
-	jQuery('.categorychecklist .popular-category :checkbox').change( syncChecks ).filter( ':checked' ).change();
 
 	jQuery('.edit-timestamp').click(function () {
 		if (jQuery('#timestampdiv').is(":hidden")) {
diff --git a/wp-admin/wp-admin.css b/wp-admin/wp-admin.css
index 4cb517992..ccf742d81 100644
--- a/wp-admin/wp-admin.css
+++ b/wp-admin/wp-admin.css
@@ -1265,6 +1265,16 @@ ul.categorychecklist li {
 	margin: 0;
 }
 
+ul#category-tabs a {
+	width: 100%;
+	display: block;
+}
+
+.ui-tabs-loading {
+	outline: none;
+	background: url(../images/loading.gif) no-repeat 0 50%;
+}
+
 #linkcategorydiv ul#category-tabs {
 	float: left;
 	width: 120px;
diff --git a/wp-includes/script-loader.php b/wp-includes/script-loader.php
index eadbb2c43..0daeece70 100644
--- a/wp-includes/script-loader.php
+++ b/wp-includes/script-loader.php
@@ -144,7 +144,7 @@ class WP_Scripts {
 				'save' => __('Save'),
 				'cancel' => __('Cancel'),
 			) );
-			$this->add( 'post', '/wp-admin/js/post.js', array('suggest', 'jquery-ui-tabs', 'wp-lists', 'postbox', 'slug'), '20080411' );
+			$this->add( 'post', '/wp-admin/js/post.js', array('suggest', 'jquery-ui-tabs', 'wp-lists', 'postbox', 'slug'), '20080412' );
 			$this->localize( 'post', 'postL10n', array(
 				'tagsUsed' =>  __('Tags used on this post:'),
 				'add' => attribute_escape(__('Add')),