[wp-hackers] 404's not showing if '%category%' is in permalink

[Alex Hempton-Smith]

Hi all,
I have a custom permalink structure like this: /%category%/%postname%/

When I visit a URL which should be a 404, I get given the message
"Sorry, but there aren't any posts in the category yet.".
Shouldn't WordPress recognize that the category doesn't exist and serve up a
404 instead?

-- Alex