// Display the category name
			echo '	<li id="linkcat-' . $cat->cat_ID . '" class="linkcat"><h2>' . $cat->cat_name . "</h2>\n\t<ul>\n";
// Call get_links() with all the appropriate params
			get_links($cat->cat_ID, '<li>', "</li>", "\n", true, 'name', false);
// Close the last category
			echo "\n\t</ul>\n</li>\n";

-----------------

<h2>Links</h2>
<ul>
<li id="linkcat-">Affiliates<ul>
<li><a href="http://www.sagmnet.com/" rel="acquaintance" title="A Sonic webcomic">SonicFolle</a></li>
</li>
</ul>
</ul>