Hello!
NOTE: Please review detailed notes in the screencast here:
http://www.screencast.com/t/EVIt2N1Em
As per the screencast notes, we are using a Third Party plugin:
http://wordpress.org/extend/plugins/taxonomy-terms-order/
to modify the Category order as it appears within the site.
This plugin automatically filters category queries and reorders them according to the plugin settings. In the admin interface for Gravity Forms, when adding a "Category" checkbox array field type in a form, the Selection process shows the re-ordered Categories correctly, however the preview and the Form rendering itself does not reflect the new (filtered) ordering.
If the code in Gravity Forms were adjusted to also run that filter, then Category (and Taxonomy) ordering could be delegated to a Third Party plugin easily, rather than having to modify your code extensively.
If there is a way to apply code to run the Taxonomy filter dynamically, by using your existing Gravity Forms api, please point me in the direction of how to do so.
Thanks for your time!
Terran