[ryan c.]

Well after digging thru this thread I finally got this to work. I am running 4.0.17 here is my subcategories.tpl for anyone interested:

{* $Id: subcategories.tpl,v 1.43.2.7 2005/10/28 05:23:51 svowl Exp $ *}

{if $products|@count eq 1}
	{assign var="prodURL" value="product.php?productid=`$products.0.productid`&cat=$cat&page=1"}
	{php}
		header( "Location: " . $GLOBALS[smarty]->_tpl_vars[prodURL] );
	{/php}
{/if}


{if $active_modules.Bestsellers ne "" and $config.Modules.bestsellers_menu ne "Y"}
<P>
{include file="modules/Bestsellers/bestsellers.tpl"}
{/if}
<P>
{if $active_modules.Special_Offers}
{include file="modules/Special_Offers/customer/category_offers_short_list.tpl}
{/if}
{if ($navigation_page eq "")||($navigation_page eq "1")}{$current_category.description|regex_replace:"/[\n]/":"<BR>"}<P>{/if}
{capture name=dialog}
{assign var="tmp" value="0"}


{section name=cat_num loop=$subcategories} 

{ if %cat_num.first% } 
<table border=0 cellspacing=5 width=100%>
{/if} 

  {if $smarty.section.cat_num.index is div by 3} 
     </tr><tr valign="top"> 
  {/if}

	<td valign="top" align="center"><ceter>
	<a class="alt" href="home.php?cat={ $subcategories[cat_num].categoryid }">
	{if $subcategories[cat_num].icon_url}<IMG height="100" border="0" alighn="middle" src="{if $subcategories[cat_num].icon_url}{$subcategories[cat_num].icon_url}{else}{$xcart_web_dir}/icon.php?categoryid={$cat}{/if}">{/if}
	</a><br><b><center><a class="alt" href="home.php?cat={ $subcategories[cat_num].categoryid }">
	{$subcategories[cat_num].category|escape}</a>

	{ $categories[cat_num].description|escape }
</center></b><p>	</td>
	

{ if %cat_num.last% } 
</tr></table> 
{/if} 

{/section} 
{if $tmp and $products ne "" }
<BR clear="left">
<HR size="1" noshade>
{/if}
{if $products}
{if $sort_fields}
<DIV align="right">{include file="main/search_sort_by.tpl" sort_fields=$sort_fields selected=$search_prefilled.sort_field direction=$search_prefilled.sort_direction url="home.php?cat=`$cat`&"}</DIV>
{/if}
{if $total_pages gt 2}
<BR>
{ include file="customer/main/navigation.tpl" }
{/if}
<HR size="1" width="100%">
{include file="customer/main/products.tpl" products=$products}
{/if}
{if $products eq "" and $tmp eq "0"}
{$lng.txt_no_products_in_cat}
{/if}
{/capture}
{include file="dialog.tpl" title=$current_category.category content=$smarty.capture.dialog extra="width=100%"}
{if $products eq ""}
{if $f_products ne ""}
<P>
{include file="customer/main/featured.tpl"}
{/if}
{/if}
{ include file="customer/main/navigation.tpl" }

And here is how it looks:
http://www.coopers-seafood.com/shop/home.php?cat=15
BTW I do store my files in the file system and NOT the database.

Thanks for all the help in this thread.