Learning Movable Type: Displaying Categories is just the thing I’ve been looking for: how to get the category to show up in the body of each post.
In the later comment, I’m pretty certain the issue with unwanted underlining is a CSS issue, will check on that, too.
Learning Moveable Type helped me out before when I added the comments to the sidebar, and keeps giving me ideas of new things to try. It’s a lot easier figuring out how to do something when it’s presented so clearly and sans technomagery.