Index: lib/gradelib.php
===================================================================
RCS file: /cvsroot/moodle/moodle/lib/gradelib.php,v
retrieving revision 1.120.2.31
diff --unified -r1.120.2.31 gradelib.php
--- lib/gradelib.php	30 Apr 2009 19:04:51 -0000	1.120.2.31
+++ lib/gradelib.php	5 May 2009 20:55:46 -0000
@@ -773,7 +773,8 @@
     }
     $cats = array();
     foreach ($categories as $category) {
-        $cats[$category->id] = $category->get_name();
+        $category_parent = $category->get_parent_category();
+        $cats[$category->id] = "{$category->get_name()} (Parent: {$category_parent->get_name()})";
     }
     asort($cats, SORT_LOCALE_STRING);