I have started my first link directory.. Please visit: UltimateDirectory Review my site and please submit your links.. its totally free... If you would like featured links or partner links feel free to request.. I decided to put links from my friends from forums on these places first... (Reciprocal link is not necessary but still appreciated :d )
Mate, if you are truley serious about your directory I would really suggest getting a custom theme made. Especially if you are going to do some modding as you would have to redo them if you did ever decide to get a custom theme made. Other than that it looks good...
One more thing I noticed, when submitting a second link the list of categories only gives you top level categories. I had to submit www.zalink.com to internet. If you could move it to the directories cat I would appreciate it