Looks like I missed a couple of spots to check for moderation.
In edit.php find:
Code:
Content visible to registered users only.
And afterwards add:
Code:
Content visible to registered users only.
In comment.php find:
Code:
Content visible to registered users only.
And afterwards add:
Code:
Content visible to registered users only.
As for the category zero, it's not a real category and doesn't have a name, so it shows up as not available.
If you upgrade to v.1.0.6.2, then a category choice becomes mandatory.