Same here, how do we get our categories back?
I figured it out after rebuilding the wp_terms* tables. My installation of 2.5 doesn’t like categories with spaces. I went into the table and deleted the one category with a space and all of my categories came back! So now the question is why is this happening?
OK there are more problems than just spaces. Now the categories are showing up, but when I click on a category it gives me a 404 error, ugh.