Conditional category and let user add new categories if none desired option ther

Hi at GF,
I would like to achieve the following with a category field if possible, but am also open to use a workaround in using a text field or similar. I looked through the forum a fair bit, but could not find any specific answers yet. This is to submit a post to wordpress....

1. When I create a form (in the backend) and choose a parent category field -> all the children (sub-categories) of that category are displayed for choice in the form on frontend

2. Conditional logic: if someone does not find the right category (front-end), they choose "Add Category" and another field pops up in which they can add a new sub-category (when will conditional logic work on the category field?)

3. This new sub-category is then added to wordpress parent-category automatically on form submission

4. Does the "category" field work with custom taxonomies? If not: is there a plan to add a taxonomy field soon?

Thanks,
Sascha

I would be interested in this sort of functionality as well.

J.

Thanks. Taxonomies and Custom Fields was really what I had in mind anyway. Now if I could just get the Gravity Forms + Custom Post Types plugin to recognize my CustomPress custom fields. ;)

J.