Ok
Hey thanks otto.
While I now feel silly because it is fixed. Can I provide some constructive criticism of the directions.
“Change the two base fields below to include category and tag in them”
is not descriptive enough when the the interface uses the very big Text label, OPTIONAL.
Maybe include the header in the instructions. I was editing the permalink structure itself because I didn’t think I needed to edit the “OPTIONAL” part.
Users don’t read!!! (despite the fact that is how the problem got solved).
Many thanks for your patience.