Atfter searching and spending a lot of time reading WordPress code I've come up with a way to to create a category by date archive and to have a calendar which links to only entries in the current category. I'm sure there is a more elegant solution than what I came up with so I'm not going to release it as a plugin yet.
My solution uses a temp table and I'm going to have to alter that to use a standard table which is only updated when an entry is edited. Once I have all that set I'll try to make it available as a plugin. If anyone is looking for this sort of functionality in the meantime fell free to contact me by leaving a comment and I'll try to explain my solution.
