--- pathauto_node.inc	2007-11-01 11:34:57.000000000 +1100
+++ pathauto_node.inc.mine	2007-11-01 11:34:29.000000000 +1100
@@ -213,6 +213,10 @@
            break;
       }
     }
+    
+    if(is_object($first_term_id)) {
+      $first_term_id=$first_term_id->tid;
+    }
     $term = taxonomy_get_term($first_term_id);
     $placeholders[t('[cat]')] = pathauto_cleanstring($term->name);