Categories not all appearing.

I’m using WP 2.0.2. (I’ve used 1.5, and I’m not sure if this was an issue then too.)

wp_list_cats(hide_empty=0) will show all categories. But If I have a parent category, Parent A and it doesn’t have posts, but its child does (child A) then neither don’t appear.

Example with hide_empty turned off:
Parent A (0)
>> Child A1 (2)
>> Child A2 (1)
>> Child A3 (0)
Parent B (1)
>> Child B1 (1)

Example with hide_empty default on:
Parent B (1)
>> Child B1 (1)

What I’d Like to see:
Parent A (0)
>> Child A1 (2)
>> Child A2 (1)
Parent B (1)
>> Child B1 (1)

Is this possible? I don’t need to see the Number of posts btw.
What I’m trying to do is create a master site with multiple subblogs. The General is all topics, but the Parent Categories are topic specific blogs with thier own theme.
I don’t want to have to post to the Parent just to see the category.

I’d also love if I’m signed in, I can see categories with private posts. To do that I’m having to change the SQL to $query under list_cats to see if a user it logged in and display categories with private posts.