Redmine

The "Category" field is a default field for issues, grouping by them on the issues overview also works out of the box (and should work for any other attribute, for that matter), but depending on what grouping exactly you mean, it might be available on trunk and the upcoming 0.9.0 branch only.

I see on the demo version that when viewing the issue list of a project, theere is 'Options' under the filter. Which then expands for 'group results by'. Is this coming in the new version?

It is in trunk and the 0.9.0 branch, and will thus be available in the next (minor) version.

Sounds great! I take it its easy to 'upgrade' redmine? (totally new to redmine and ruby)

Have a look at the upgrade guide and see for yourself ;-) But to make it short: it's 5 minutes of work to update, 5 more if you have to upgrade some dependencies (rails or other gems), 5 more if you didn't install from the svn (or git) repository and downloaded an install tarball instead (all provided you know your way around your linux distro or other os).

I have 3 redmine installations in use, all of which are installed from svn, and the update most of the time just consists of blocking access to the redmine, making an svn up, running the database migration (somewhat equivalent to version control for the db schema), reloading rails and/or the webserver, and freeing the access to the redmine. (Please note that you should always make backups before an update as described in the upgrade guide, I just tend to skip this as I have daily backups of the whole stuff.)