Added May 25, 2010:
Sometimes people want to save time by using a pre-made category dump like this one. Before you do this, please understand that one of the qualities that can make your directory different than the others is the choice of categories. In phpLD version 3 in the admin panel, there is a link under each category called "Quick Subcategory Adder". After adding your top level categories, you can then use the Quick Subcategory Adder to add subcategories to your existing categories (one per line). Using this method you can bring in categories from a variety of sources, and have around 1000 in an hour or two or work.
Ok, so you have read all of this and just want the phpLD Category Dump. No problem! Here it is!
This one comes with 3400+ categories, and we want to thank findinfo for submitting it.
Important to note this dump is for phpLD version 3.3.
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