Is it okay to report images in the wrong category provided you write in the correct category that it should be in? I'm familiar with a lot of artists and I see a lot of pics mis-labeled and would like to help them to be moved into the right category.

Sure.
Images are often misplaced, because the poster didn't bother to read the rules!
That or the poster didn't know what anime it came from.

BTW, did you see the new ripp in the last exile gallery?

when I report images...will the members reported would get "harmed"??? ;_;