Index: branches/unlabeled/unlabeled-1.10.2/core/units/categories/categories_item.php
===================================================================
diff -u -r6842 -r7060
--- branches/unlabeled/unlabeled-1.10.2/core/units/categories/categories_item.php	(.../categories_item.php)	(revision 6842)
+++ branches/unlabeled/unlabeled-1.10.2/core/units/categories/categories_item.php	(.../categories_item.php)	(revision 7060)
@@ -14,7 +14,9 @@
 			$this->checkFilename();
 			$this->generateFilename();
 
-			$this->SetDBField('ParentId', $this->Application->GetVar('m_cat_id') );
+			$parent_category = $this->GetDBField('ParentId') > 0 ? $this->GetDBField('ParentId') : $this->Application->GetVar('m_cat_id');
+			$this->SetDBField('ParentId', $parent_category);
+			
 			$ret = parent::Create($force_id, $system_create);
 			if ($ret) {
 				$sql = 'UPDATE %s SET ParentPath = %s WHERE CategoryId = %s';
Index: branches/unlabeled/unlabeled-1.25.2/core/units/categories/categories_event_handler.php
===================================================================
diff -u -r7057 -r7060
--- branches/unlabeled/unlabeled-1.25.2/core/units/categories/categories_event_handler.php	(.../categories_event_handler.php)	(revision 7057)
+++ branches/unlabeled/unlabeled-1.25.2/core/units/categories/categories_event_handler.php	(.../categories_event_handler.php)	(revision 7060)
@@ -354,7 +354,7 @@
 		$live_object =& $this->Application->recallObject($event->Prefix.'.-item', null, Array('live_table' => true, 'skip_autoload' => true));
 		$live_object->Load($id);
 
-		$cached_fields = Array('Name', 'Filename', 'CategoryTemplate');
+		$cached_fields = Array('Name', 'Filename', 'CategoryTemplate', 'ParentId');
 
 		foreach ($cached_fields as $cached_field) {
 			if ($live_object->GetDBField($cached_field) != $temp_object->GetDBField($cached_field)) {