diff --git a/wp-admin/edit-form-advanced-tabs.php b/wp-admin/edit-form-advanced-tabs.php
deleted file mode 100644
index 34acad8829..0000000000
--- a/wp-admin/edit-form-advanced-tabs.php
+++ /dev/null
@@ -1,28 +0,0 @@
-<?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 15b653ffe3..b531b9c42e 100644
--- a/wp-admin/edit-form-advanced.php
+++ b/wp-admin/edit-form-advanced.php
@@ -219,17 +219,29 @@ 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"></p>
+	<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>
 </div>
 
 <ul id="category-tabs">
-	<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>
+	<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>
 </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'); // If we up the # here we have to do so in edit-form-advanced-tabs.php too ?>
+		<?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 ); ?>
 	</ul>
 </div>
 
diff --git a/wp-admin/images/loading.gif b/wp-admin/images/loading.gif
deleted file mode 100644
index 85b99d46b9..0000000000
Binary files a/wp-admin/images/loading.gif and /dev/null differ
diff --git a/wp-admin/includes/template.php b/wp-admin/includes/template.php
index 34ff96a4c0..01c3a28820 100644
--- a/wp-admin/includes/template.php
+++ b/wp-admin/includes/template.php
@@ -194,8 +194,6 @@ 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();
@@ -206,7 +204,7 @@ 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; ?>" name="post_category[]" <?php checked( in_array( $category->term_id, $checked_categories ), true ); ?> />
+			<input id="in-<?php echo $id; ?>" type="checkbox" value="<?php echo (int) $category->term_id; ?>" />
 				<?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 790cfa4a34..18c9706fac 100644
--- a/wp-admin/js/post.js
+++ b/wp-admin/js/post.js
@@ -100,79 +100,60 @@ jQuery(document).ready( function() {
 	jQuery('#newtag').keypress( tag_press_key );
 
 	// category 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');
+	var categoryTabs =jQuery('#category-tabs').tabs();
 
-			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;
-				noSyncChecks = true;
+	// 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 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
+				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 );
 			} );
-			jQuery('.categorychecklist .popular-category :checkbox').change( syncChecks ).filter( ':checked' ).change();
-		
-			if ( newCatFocus ) {
-				jQuery('#newcat').focus();
-				newCatFocus = false;
-			}
-		}
+			newCatParentOption.attr( 'selected', true );
+		} );
+	};
+	jQuery('#categorychecklist').wpList( {
+		alt: '',
+		response: 'category-ajax-response',
+		addBefore: catAddBefore,
+		addAfter: catAddAfter
 	} );
-
 	jQuery('#category-add-toggle').click( function() {
 		jQuery(this).parents('div:first').toggleClass( 'wp-hidden-children' );
-		categoryTabs.tabsClick( 2 );
+		categoryTabs.tabsClick( 1 );
 		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 ad1bfd3fb8..7a9283ca19 100644
--- a/wp-admin/wp-admin.css
+++ b/wp-admin/wp-admin.css
@@ -1269,16 +1269,6 @@ 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 80d4d2a54d..11faca2f70 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'), '20080412' );
+			$this->add( 'post', '/wp-admin/js/post.js', array('suggest', 'jquery-ui-tabs', 'wp-lists', 'postbox', 'slug'), '20080411' );
 			$this->localize( 'post', 'postL10n', array(
 				'tagsUsed' =>  __('Tags used on this post:'),
 				'add' => attribute_escape(__('Add')),