products, categories & subcategories in ShopSite v10 ???

[crickart]

Categories and sub-categories and even sub sub categories ......This seems to be something allot of people need including me!
I seem to remember reading something to the effect that v10 has the ability to have sub categories built in to the back office.

IS THIS TRUE?

I have 20 categories, 5 different vendors, and then 10 or so items for each.

My confusion is how can you just have this major string of products in the products section of the back office with out dividing them into categories?

an example would be.

Categories
Pants
shirts
shorts
hat
Sub-category for Pants
Levi
Wrangler
Guess
Sub Sub Category for Pants, Levis:
Denim
Cords
Dress
and so on....
This refers to only the Back Office portion of ShopSite
There has got to be a way to have it more organized so you can simply find things.

How do you guys with many products, and several categories do it?

If v10 has it built in - sign me up!