Not Able To Add/Edit Category In Magento

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I am having a frustrating issue in Magento Admin Panel. Whenever i try to add a subcategory under default category It only shows "Please Wait" Ajax Loader for a long time and nothing happens. I tried to check by looking into Magento's system and exception logs but nothing is there. It seems to me some server issue which blocking the ajax requests in Magento admin Panel. But everything apart from it is working fine. I added few products and it has been added easily. The problem is with category only.

My Magento Version is 1.8.1.0 and my server(Apache) is on Shared Hosting. Any help would be appreciable.

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