(1) If you fail to give a post a category it will automatically be catorized as “uncategorized”. This is the default category – Uncategorized.
(2) Creating categories
-> dashboard -> manage -> categories -> add categories
Your categories will not show in your sidebar until two thing happen. You configure your category widget and place it in the sidebar and at least one post has been assigned to the category.
(3) This will help you configure your widgets and place them in your sidebar http://bloggersblurt.wordpress.com/2006/09/17/widget-wizardry/
(4) Changing categories on an post -> dashboard -> manage -> posts -> select the post in question and click edit -> reassign a new category and click “save”.
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