1. Move mycategoryorder.php to /wp-content/plugins/
2. Activate the My Category Order plugin on the Plugins menu
3. Go to the "My Category Order" tab under Manage and specify your desired
   order for post categories
   
4. If you are using widgets then replace the standard "Category" widget with the "My Category Order" widget. That's it.

5. If you aren't using widgets, modify sidebar template to use correct filter (additional parameter seperated by ampersands):
	wp_list_categories('orderby=order&optioncount=1&hierarchical=0&title_li=<h2>Categories</h2>');

http://www.geekyweekly.com/mycategoryorder
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