diff --git a/wp-content/themes/default/archives.php b/wp-content/themes/default/archives.php
index 2c304662f3..de6c07c00f 100644
--- a/wp-content/themes/default/archives.php
+++ b/wp-content/themes/default/archives.php
@@ -17,7 +17,7 @@ Template Name: Archives
 
 <h2>Archives by Subject:</h2>
   <ul>
-     <?php wp_list_cats(); ?>
+     <?php wp_list_categories(); ?>
   </ul>
 
 </div>
diff --git a/wp-includes/template-functions-category.php b/wp-includes/template-functions-category.php
index 2886b9ad64..a269e69f6a 100644
--- a/wp-includes/template-functions-category.php
+++ b/wp-includes/template-functions-category.php
@@ -219,7 +219,7 @@ function wp_list_categories($args = '') {
 		'order' => 'asc', 'style' => 'list', 'show_last_update' => 0,
 		'show_count' => 0, 'hide_empty' => 1, 'use_desc_for_title' => 1,
 		'child_of' => 0, 'feed' => '', 'feed_image' => '', 'exclude' => '',
-		'hierarchical' => false, 'title_li' => '');
+		'hierarchical' => true, 'title_li' => '');
 	$r = array_merge($defaults, $r);
 	$r['include_last_update_time'] = $r['show_date'];
 	extract($r);