Indexing for full text search has nothing to do with categories. Categories in the current CVS head is not functional, since a recent upgrade/merge
http://fisheye.openacs.org/changelog/OpenACS/openacs-4/packages/categories?cs=MAIN:donb:20081109232922 of Don broke it.
To get categories working quickly, get the previous version of categories by doing
cd openacs-4/packages
rm -rf categories
cvs -d:pserver:mailto:anonymous@cvs.openacs.org:/cvsroot co -D "09 November 2008" -d categories openacs-4/packages/categories
and restart the server. That's one of the dangers of using the head version.
Of course, fixing the head version would be good as well...