On his Tower of Power blog Daniel Cousineau has written up a look at using a more detailed categorization method than just a parent/child relationship on your data - Tree Traversals.

If the software calls for only 2 levels of categorization (Parent and Child only), a simple nested for loop will suffice. However, software requirements change and you'll soon find yourself up shit creek without a paddle if you need to support 3 or 4 levels of nesting. [...] To those who's training is less formal (most web developers I meet have practical training, not formal), I'll help you out: Tree Traversals (or if you are completely lost, Recursion).

He creates a recursive function that, when passed in a category set with different types in it, can handle each of them and then calls itself again with the new child data. His sample code creates url out of a set of categories.