ok, here is the "full" answer as to how it works... (I'm going to deal with some special cases that the others haven't and I wrote all this when there were no other answers in the thread)
First, the number of categories a particular site can be submitted to bears no relation to the number of categories where a site can be listed. For the first, there are hard rules, for the other, it is left up to the reviewing editor's discretion. (Many assume that they are one and the same thing, which is not the case).
So, you are concerned with submissions, here are the rules.
This first part applies if your site is written in the English language only, and is not directly aimed at Kids and Teens:
Think of the directory as having two "parts" or "branches" (this is oversimplifying it, I know) - the "Regional" and "Topical" branches. By Regional, I mean any category under
http://dmoz.org/Regional By "Topical", I mean any of the other parts under
http://dmoz.org/
If the site has Regional focus (i.e. it is for a business that has a true "brick and mortar" location) which is obvious from the web site, then navigate down as far as possible to get the category for the town/city/village where the business is located. Then, if there are subcategories, try to find one that best fits the business or the nature of the site. You may make ONE suggestion in that category. If the site or business does not have an obvious regional focus, then no submission is possible in this branch of the tree.
Now on to the Topical part of the tree. You are allowed to make ONE submission somewhere in there - and this will depend so much on the nature of the site that I can't really give you guidelines. I would suggest you read the "Description" link at the top of each of the other branches to see which one your site best fits. Then navigate down as far as you can, reading the "Descriptions" for each category, as available, and make a submission there. Note that some types of businesses (Real Estate companies would be one example) are considered inherantly just regional in nature and do not qualify for a Topical listing.
Clear as mud so far? Then I will complicate matters further (and then make things a lot easier!).
For each language other than English that the site is written in, you will need to go and look in the "World" part of the directory to find each language. Some of the languages have their own "Regional" and "Topical" breakdowns, in which case apply the same rules as for the English category.
If the site is specifically geared towards Kids and Teens, then you need to read the Description at the head of that branch to see the requirements, and do the same navigation down to the lowest possible category.
To summarise - here is the most a site should ever be submitted to:
Somewhere under
http://dmoz.org/Regional - once
Somewhere under
http://dmoz.org/ that isn't World or K&T or Regional - once
Somewhere under
http://dmoz.org/World - twice for each language that the site is written in other than English
Somewhere under
http://dmoz.org/Kids_and_Teens/ if the site is geared exclusively to that audience.
Complicated, huh? Well, I promised I would make it simpler....
If you make ONE suggestion, and do the best job you can to find the best category for it, editors will make the call as to whether it is the most appropriate category, and move it or duplicate it accordingly.
Hope this helps.