New Blog Template: categories and tags

The blog template is working however the categories and tags are not being copied over. The Dashboard indicates that there should be 19 cateories and 3 tags: http://d.pr/i/8Sw5 - - however when I go to the category page, no categories are listed: http://d.pr/i/u56z (same with tags)

I looked in the database and the info from post_meta is not getting transferred over from the site that is set as the global template.

I'm using version 1.8 of the plugin