Since the software upgrade July 2010?

Product items placed in categories before the upgrade populate the Categories field in the Manage Products table.
Product items placed in categories after the upgrade do not populate the Categories field in the Manage Products table.

Since the software upgrade there is no Category drop down in the Add Product dialogue.

Since the software upgrade, on initially setting up a product, once some details have been put into the new product page, the Categories tab becomes available and a Category can be selected, this works well since a number of Categories can be selected for each product. Unfortunately, the Category(ies) then does NOT appear in the Categories column of the Manage Products table for this product.

This then creates an issue if Searching by Category because newly added products (even though Category is added later) do not appear in the search results.

Is there a way the Category field in the Manage Products table can be populated by new product Categories?