Category question vs. Money categories

I assume from your post that refers to R3, that you are referring to Q2010.

I don't see any evidence that *Quicken* (Q2010) has any problem with subcategories. Have you seen any problem behaviour with new subcategories you have created in Quicken?

I don't think so; but it's hard to tell from your post.

There is a known *conversion* problem with subcategories; though I don't recall anyone explaining it as you have. In fact, the explanations I have seen, say essentially the opposite of what you have said.

If you want to see if you are having the problem I know about - and you want to know how to "correct" it in Q2010 (and maybe in Q2009): choose a subcategory that is giving you a problem; open the Category List, select that subcategory, click Edit, click OK. Then try to recreate your problem (from scratch). If the one subcategory you "Edit"ed in the Category List no longer exhibits the problem ... apply the same "fix" to all your subcategories.

I can not tell you whether (or when) the problem will be "fixed" for new conversions.