ah. here are some pages of what I've done.
links.php:
All links are database stored, and the catagories are too. When you create a link you choose the catagorey it's under (in the admin pages). And it puts in in that catagorey in the displayed page. If a catagorey is deleted all links under it are automtically moved to a catagorey called "linkcache". The linkcache is not displayed on the main page. The linkcache cannot be deleted (I've hardcoded it not to be). And from there you can move links out of the linkcache into other catagories.
Now one of the cooler things I've done (attached image) is the ability to reorder the catagories (as you see I've disabled the moving of the linkcache). Here's the link page
http://dynamic2.gamespy.com/~extreme/links.php