diff --git a/wp-admin/admin-header.php b/wp-admin/admin-header.php
index 71a16995d..ab867f3bd 100644
--- a/wp-admin/admin-header.php
+++ b/wp-admin/admin-header.php
@@ -76,6 +76,7 @@ addLoadEvent(blurry);
 //]]>
 </script>
 <script type="text/javascript" src="fat.js"></script>
+<?php if ( isset( $editing ) ) : ?>
 <?php if ( get_option('rich_editing') ) :?>
 <script type="text/javascript" src="tinymce/tiny_mce_src.js"></script>
 <script type="text/javascript">
@@ -97,9 +98,105 @@ tinyMCE.init({
 });
 </script>
 <?php endif; ?>
-<?php if ( isset( $editing ) ) : ?>
 <script type="text/javascript" src="dbx.js"></script>
 <script type="text/javascript" src="dbx-key.js"></script>
+<script type="text/javascript" src="tw-sack.js"></script>
+<script type="text/javascript">
+var ajaxCat = new sack();
+
+function getResponseElement() {
+var p = document.getElementById('ajaxcatresponse');
+	if (!p) {
+		p = document.createElement('p');
+		document.getElementById('categorydiv').appendChild(p);
+		p.id = 'ajaxcatresponse';
+	}
+	return p;
+}
+
+function newCatLoading() {
+	var p = getResponseElement();
+	p.innerHTML = 'Sending Data...';
+}
+
+function newCatLoaded() {
+	var p = getResponseElement();
+	p.innerHTML = 'Data Sent...';
+}
+
+function newCatInteractive() {
+	var p = getResponseElement();
+	p.innerHTML = 'Processing Data...';
+}
+
+function newCatCompletion() {
+	var p = getResponseElement();
+	var id = ajaxCat.response;
+	if ( id == '-1' ) {
+		p.innerHTML = "You don't have permission to do that.";
+		return;
+	}
+	if ( id == '0' ) {
+		p.innerHTML = "That category name is invalid.  Try something else.";
+		return;
+	}
+	p.parentNode.removeChild(p);
+	var exists = document.getElementById('category-' + id);
+	if (exists) {
+		exists.checked = 'checked';
+		exists.parentNode.setAttribute('id', 'new-category-' + id);
+		var nowClass = exists.parentNode.getAttribute('class');
+		exists.parentNode.setAttribute('class', nowClass + ' fade');
+		Fat.fade_all();
+		exists.parentNode.setAttribute('class', nowClass);
+	} else {
+		var catDiv = document.getElementById('categorychecklist');
+		var newLabel = document.createElement('label');
+		catDiv.insertBefore(newLabel, catDiv.firstChild);
+		newLabel.setAttribute('for', 'category-' + id);
+		newLabel.setAttribute('id', 'new-category-' + id);
+		newLabel.setAttribute('class', 'selectit fade');
+
+		var newCheck = document.createElement('input');
+		newLabel.appendChild(newCheck);
+		newCheck.value = id;
+		newCheck.type = 'checkbox';
+		newCheck.checked = 'checked';
+		newCheck.name = 'post_category[]';
+		newCheck.id = 'category-' + id;
+
+		var newLabelText = document.createTextNode(' ' + document.getElementById('newcat').value);
+		newLabel.appendChild(newLabelText);
+		Fat.fade_all();
+		newLabel.setAttribute('class', 'selectit');
+	}
+}
+
+function ajaxNewCatKeyUp(e) {
+	if (!e) {
+		if (window.event) {
+			e = window.event;
+		} else {
+			return;
+		}
+	}
+	if (e.keyCode == 13) {
+		ajaxNewCat();
+	}
+}
+
+function ajaxNewCat() {
+	var newcat = document.getElementById('newcat');
+	var catString = 'ajaxnewcat=' + newcat.value;
+	ajaxCat.requestFile = 'edit-form-ajax-cat.php';
+	ajaxCat.method = 'GET';
+	ajaxCat.onLoading = newCatLoading;
+	ajaxCat.onLoaded = newCatLoaded;
+	ajaxCat.onInteractive = newCatInteractive;
+	ajaxCat.onCompletion = newCatCompletion;
+	ajaxCat.runAJAX(catString);
+}
+</script>
 <?php endif; ?>
 
 <?php do_action('admin_head'); ?>
diff --git a/wp-admin/edit-form-advanced.php b/wp-admin/edit-form-advanced.php
index 1c6dc288b..ebe6279a7 100644
--- a/wp-admin/edit-form-advanced.php
+++ b/wp-admin/edit-form-advanced.php
@@ -83,10 +83,10 @@ addLoadEvent(focusit);
 
 <fieldset id="categorydiv" class="dbx-box">
 <h3 class="dbx-handle"><?php _e('Categories') ?></h3> 
-<div class="dbx-content"><div><?php dropdown_categories(get_settings('default_category')); ?></div>
+<div class="dbx-content"><div id="categorychecklist"><?php dropdown_categories(get_settings('default_category')); ?></div>
 <p id="ajaxcat">
-  <input type="text" name="newcat" id="newcat" size="16" /> 
-  <input type="button" name="Button" value="+">
+  <input type="text" name="newcat" id="newcat" size="16" onkeyup="ajaxNewCatKeyUp(event);" /> 
+  <input type="button" name="Button" value="+" onclick="ajaxNewCat();" />
 </p>
 </div>
 </fieldset>
diff --git a/wp-admin/edit-form-ajax-cat.php b/wp-admin/edit-form-ajax-cat.php
new file mode 100644
index 000000000..03bf48cae
--- /dev/null
+++ b/wp-admin/edit-form-ajax-cat.php
@@ -0,0 +1,29 @@
+<?php
+require_once('../wp-config.php');
+require_once('admin-functions.php');
+
+get_currentuserinfo();
+
+if ( !current_user_can('manage_categories') )
+	die('-1');
+
+function grab_id() {
+	global $new_cat_id;
+	$new_cat_id = func_get_arg(0);
+}
+
+add_action('edit_category', 'grab_id');
+add_action('create_category', 'grab_id');
+
+$cat_name = stripslashes($_GET['ajaxnewcat']);
+
+if ( !$category_nicename = sanitize_title($cat_name) )
+	die('0');
+if ( $already = $wpdb->get_var("SELECT cat_ID FROM $wpdb->categories WHERE category_nicename = '$category_nicename'") )
+	die($already);
+
+$cat_name = $wpdb->escape($cat_name);
+$cat_array = compact('cat_name', 'category_nicename');
+wp_insert_category($cat_array);
+echo $new_cat_id;
+?>
\ No newline at end of file
diff --git a/wp-admin/tw-sack.js b/wp-admin/tw-sack.js
new file mode 100644
index 000000000..4f244d4e6
--- /dev/null
+++ b/wp-admin/tw-sack.js
@@ -0,0 +1,133 @@
+/* Simple AJAX Code-Kit (SACK) */
+/* ©2005 Gregory Wild-Smith */
+/* www.twilightuniverse.com */
+/* Software licenced under a modified X11 licence, see documentation or authors website for more details */
+
+function sack(file){
+	this.AjaxFailedAlert = "Your browser does not support the enhanced functionality of this website, and therefore you will have an experience that differs from the intended one.\n";
+	this.requestFile = file;
+	this.method = "POST";
+	this.URLString = "";
+	this.encodeURIString = true;
+	this.execute = false;
+
+	this.onLoading = function() { };
+	this.onLoaded = function() { };
+	this.onInteractive = function() { };
+	this.onCompletion = function() { };
+
+	this.createAJAX = function() {
+		try {
+			this.xmlhttp = new ActiveXObject("Msxml2.XMLHTTP");
+		} catch (e) {
+			try {
+				this.xmlhttp = new ActiveXObject("Microsoft.XMLHTTP");
+			} catch (err) {
+				this.xmlhttp = null;
+			}
+		}
+		if(!this.xmlhttp && typeof XMLHttpRequest != "undefined")
+			this.xmlhttp = new XMLHttpRequest();
+		if (!this.xmlhttp){
+			this.failed = true; 
+		}
+	};
+	
+	this.setVar = function(name, value){
+		if (this.URLString.length < 3){
+			this.URLString = name + "=" + value;
+		} else {
+			this.URLString += "&" + name + "=" + value;
+		}
+	}
+	
+	this.encVar = function(name, value){
+		var varString = encodeURIComponent(name) + "=" + encodeURIComponent(value);
+	return varString;
+	}
+	
+	this.encodeURLString = function(string){
+		varArray = string.split('&');
+		for (i = 0; i < varArray.length; i++){
+			urlVars = varArray[i].split('=');
+			if (urlVars[0].indexOf('amp;') != -1){
+				urlVars[0] = urlVars[0].substring(4);
+			}
+			varArray[i] = this.encVar(urlVars[0],urlVars[1]);
+		}
+	return varArray.join('&');
+	}
+	
+	this.runResponse = function(){
+		eval(this.response);
+	}
+	
+	this.runAJAX = function(urlstring){
+		this.responseStatus = new Array(2);
+		if(this.failed && this.AjaxFailedAlert){ 
+			alert(this.AjaxFailedAlert); 
+		} else {
+			if (urlstring){ 
+				if (this.URLString.length){
+					this.URLString = this.URLString + "&" + urlstring; 
+				} else {
+					this.URLString = urlstring; 
+				}
+			}
+			if (this.encodeURIString){
+				var timeval = new Date().getTime(); 
+				this.URLString = this.encodeURLString(this.URLString);
+				this.setVar("rndval", timeval);
+			}
+			if (this.element) { this.elementObj = document.getElementById(this.element); }
+			if (this.xmlhttp) {
+				var self = this;
+				if (this.method == "GET") {
+					var totalurlstring = this.requestFile + "?" + this.URLString;
+					this.xmlhttp.open(this.method, totalurlstring, true);
+				} else {
+					this.xmlhttp.open(this.method, this.requestFile, true);
+				}
+				if (this.method == "POST"){
+  					try {
+						this.xmlhttp.setRequestHeader('Content-Type','application/x-www-form-urlencoded')  
+					} catch (e) {}
+				}
+
+				this.xmlhttp.send(this.URLString);
+				this.xmlhttp.onreadystatechange = function() {
+					switch (self.xmlhttp.readyState){
+						case 1:
+							self.onLoading();
+						break;
+						case 2:
+							self.onLoaded();
+						break;
+						case 3:
+							self.onInteractive();
+						break;
+						case 4:
+							self.response = self.xmlhttp.responseText;
+							self.responseXML = self.xmlhttp.responseXML;
+							self.responseStatus[0] = self.xmlhttp.status;
+							self.responseStatus[1] = self.xmlhttp.statusText;
+							self.onCompletion();
+							if(self.execute){ self.runResponse(); }
+							if (self.elementObj) {
+								var elemNodeName = self.elementObj.nodeName;
+								elemNodeName.toLowerCase();
+								if (elemNodeName == "input" || elemNodeName == "select" || elemNodeName == "option" || elemNodeName == "textarea"){
+									self.elementObj.value = self.response;
+								} else {
+									self.elementObj.innerHTML = self.response;
+								}
+							}
+							self.URLString = "";
+						break;
+					}
+				};
+			}
+		}
+	};
+this.createAJAX();
+}
\ No newline at end of file