The categories now display on the left sidebar but clicking on them throws a 404 error page (which by the way is really neat as it also shows a site map..........very cool!)
It's usually due to your permalink and not related to the widgets or template =P.
So, just go to "Options => Permalink" and hit the update button +> then go the category page to see if there's another 404 error. If there's, let me know.
Mint Tree..there is something odd here and it is nothing to do with the template you are quite right BUT if you were to have any idea how I might fix it I'd be grateful.
However, when I hover the mouse over one of the category links and look down in the bottom right hand corner to see what the url is it says http://murmurz.com/category/murmurz/
Now I cannot for the life of me see why the word 'category' is appearing there?? Surely it should be the domain name/category name?
I have cut and pasted the permalink in case I have done something wrong there...........
There was an advanced tab under permalinks which I had not noticed before. The fields were blank but they also said that the default when left blank was /category/%category%/
Anyway I input /%category%/ into the advanced field and it is now fixed.
I've never come across that before and really appreciate your help in sorting it out as I appreciate it was nothing to do with the template!!