Restricitng authors posts to specific categories

Some of our users would like to restrict posting access to specific categories. In other words:

* author X should only be able to assign categories that they "own" / belong to

* everyone should be able to read all public posts

There are a few standalone plugins which do this, such as: Author2Categories

http://wordpress.org/extend/plugins/authors2categories/

Has anyone gotten this or something similar to work with MU?

Rod