Create Config.xml file

Set categories as custom source type attribute

<?xml version="1.0"?>
<config>
    <modules>
        <Addpeople_Categoryattr>
            <version>0.1.0</version>
        </Addpeople_Categoryattr>
    </modules>
    <global>
        <models>
            <categoryattr>
                <class>Addpeople_Categoryattr_Model</class>
            </categoryattr>
        </models>
        <resources>
            <addpeople_categoryattr_setup>
                <setup>
                    <module>Addpeople_Categoryattr</module>
                    <class>Mage_Eav_Model_Entity_Setup</class>
                </setup>
            </addpeople_categoryattr_setup>
        </resources>
    </global>
</config>

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