diff --git a/wp-content/themes/classic/sidebar.php b/wp-content/themes/classic/sidebar.php
index 0efd30ba3..44ff44dd9 100644
--- a/wp-content/themes/classic/sidebar.php
+++ b/wp-content/themes/classic/sidebar.php
@@ -3,13 +3,9 @@
 <div id="menu">
 
 <ul>
-	<?php wp_list_pages(); ?>
-	<?php wp_list_bookmarks(); ?>
- <li id="categories"><?php _e('Categories:'); ?>
-	<ul>
-	<?php wp_list_cats(); ?>
-	</ul>
- </li>
+	<?php wp_list_pages('title_li=' . __('Pages:')); ?>
+	<?php wp_list_bookmarks('title_after=&title_before='); ?>
+	<?php wp_list_categories('title_li=' . __('Categories:')); ?>
  <li id="search">
    <label for="s"><?php _e('Search:'); ?></label>
    <form id="searchform" method="get" action="<?php echo $_SERVER['PHP_SELF']; ?>">
diff --git a/wp-content/themes/default/sidebar.php b/wp-content/themes/default/sidebar.php
index 4fb8ec3ae..7ed8c11ee 100644
--- a/wp-content/themes/default/sidebar.php
+++ b/wp-content/themes/default/sidebar.php
@@ -46,11 +46,7 @@
 				</ul>
 			</li>
 
-			<li><h2>Categories</h2>
-				<ul>
-				<?php wp_list_cats('sort_column=name&optioncount=1&hierarchical=0'); ?>
-				</ul>
-			</li>
+			<?php wp_list_categories('sort_column=name&optioncount=1&hierarchical=0&title_li=<h2>Categories</h2>'); ?>
 
 			<?php /* If this is the frontpage */ if ( is_home() || is_page() ) { ?>
 				<?php wp_list_bookmarks(); ?>
diff --git a/wp-includes/category-template.php b/wp-includes/category-template.php
index 3df9b73cf..0ca0e629d 100644
--- a/wp-includes/category-template.php
+++ b/wp-includes/category-template.php
@@ -212,11 +212,11 @@ function wp_list_categories($args = '') {
 	else
 		parse_str($args, $r);
 
-	$defaults = array('show_option_all' => '', 'orderby' => 'ID',
-		'order' => 'asc', 'style' => 'list', 'show_last_update' => 0,
+	$defaults = array('show_option_all' => '', 'orderby' => 'name',
+		'order' => 'ASC', 'show_last_update' => 0, 'style' => 'list',
 		'show_count' => 0, 'hide_empty' => 1, 'use_desc_for_title' => 1,
 		'child_of' => 0, 'feed' => '', 'feed_image' => '', 'exclude' => '',
-		'hierarchical' => true, 'title_li' => '');
+		'hierarchical' => true, 'title_li' => __('Categories'));
 	$r = array_merge($defaults, $r);
 	$r['include_last_update_time'] = $r['show_date'];
 	extract($r);
@@ -224,7 +224,7 @@ function wp_list_categories($args = '') {
 	$categories = get_categories($r);
 	
 	$output = '';
-	if ( $title_li && $list )
+	if ( $title_li && 'list' == $style )
 			$output = '<li class="categories">' . $r['title_li'] . '<ul>';
 
 	if ( empty($categories) ) {
@@ -243,7 +243,7 @@ function wp_list_categories($args = '') {
 		$output .= walk_category_tree($categories, $depth, $r);
 	}
 
-	if ( $title_li && $list )
+	if ( $title_li && 'list' == $style )
 		$output .= '</ul></li>';
 			
 	echo apply_filters('list_cats', $output);
diff --git a/wp-includes/deprecated.php b/wp-includes/deprecated.php
index 23668d8e9..fab1a1540 100644
--- a/wp-includes/deprecated.php
+++ b/wp-includes/deprecated.php
@@ -430,6 +430,7 @@ function wp_list_cats($args = '') {
 		$r['show_count'] = $r['optioncount'];
 	if ( !empty($r['list']) )
 		$r['style'] = 'break';
+	$r['title_li'] = '';
 
 	return wp_list_categories($r);	
 }