Upgraded to WP 3.0 now categories and posts do not show in widgets

Hello, and thanks for reading.

I have a website with multiple installs of wordpress, so multi site has been much anticipated. I am starting with 1 site at a time, importing into a test environment.

Heres my problem.

I upgraded wp site domain.com/blog to wp 3.0, my theme works fine.

I install wp 3.0 on my test site (same server/settings) install the same exact theme, and my tags and widgets dont work. I am using tags like show categories:
<?php wp_list_categories(‘show_count=0&title_li=’); ?>
And widgets like, latest posts, coments etc.

The content shows up in the loop, but not on my sidebars etc where I am calling my category lists etc.

Is there something in 3.0 that would require additional code, or that the tags be placed inside of other tags or loops?

Thanks in advance