Categories allows you to create categories on your desktop. These are icons that are like folders that can contain other icons to launch. This allows you to organize your desktop rather than having it be a huge mess. The app comes with a GUI configurator so that you do not have to edit text files. When you add an app to a category, it is removed from the springboard list so that it no longer shows up on the main desktop. When you remove the app from the category it is returned back to the springboard.
Changes:
fixed a bug on 1.0.2 firmware - the "Show Assigned Apps" toggle didn't work