Padraic...
Did you mean to post all of the code like this or to link it?
customer/main/subcategories.tpl...
{* $Id: subcategories.tpl,v 1.43.2.9 2006/06/27 08:22:01 svowl Exp $ *}
{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}<P>{/if}
{capture name=dialog}
{assign var="tmp" value="0"}
{section name=cat_num loop=$subcategories}
{if $subcategories[cat_num].category}{assign var="tmp" value="1"}{/if}
{/section}
{if $subcategories}
<TABLE border="0" cellspacing="5" width="100%">
{foreach from=$subcategories item=subcat}
<TR>
{if $tmp and $first_subcat ne "Y"}
<TD valign="top" rowspan="{count value=$subcategories print="Y"}"><IMG src="{if $current_category.icon_url}{$current_category.icon _url}{else}{$xcart_web_dir}/icon.php?categoryid={$cat}{/if}"></TD>
{assign var="first_subcat" value="Y"}
{/if}
<TD align="left" width="95%"> <A href="home.php?cat={ $subcat.categoryid }"><FONT class="ItemsList">{ $subcat.category|escape }</FONT></A><BR></TD>
<TD align="right" nowrap><FONT class="Text">{if $config.Appearance.count_products eq "Y"}
{if $subcat.product_count}{ $subcat.product_count } {$lng.lbl_products}
{elseif $subcat.subcategory_count}{ $subcat.subcategory_count } {$lng.lbl_categories|lower}
{/if}
{/if}</FONT></TD>
</TR>
{/foreach}
</TABLE>
{/if}
{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" }
Here's the only other related template that I think could possibly be causing problem...
dialog.tpl...
{* $Id: subcategories.tpl,v 1.43.2.9 2006/06/27 08:22:01 svowl Exp $ *}
{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}<P>{/if}
{capture name=dialog}
{assign var="tmp" value="0"}
{section name=cat_num loop=$subcategories}
{if $subcategories[cat_num].category}{assign var="tmp" value="1"}{/if}
{/section}
{if $subcategories}
<TABLE border="0" cellspacing="5" width="100%">
{foreach from=$subcategories item=subcat}
<TR>
{if $tmp and $first_subcat ne "Y"}
<TD valign="top" rowspan="{count value=$subcategories print="Y"}"><IMG src="{if $current_category.icon_url}{$current_category.icon _url}{else}{$xcart_web_dir}/icon.php?categoryid={$cat}{/if}"></TD>
{assign var="first_subcat" value="Y"}
{/if}
<TD align="left" width="95%"> <A href="home.php?cat={ $subcat.categoryid }"><FONT class="ItemsList">{ $subcat.category|escape }</FONT></A><BR></TD>
<TD align="right" nowrap><FONT class="Text">{if $config.Appearance.count_products eq "Y"}
{if $subcat.product_count}{ $subcat.product_count } {$lng.lbl_products}
{elseif $subcat.subcategory_count}{ $subcat.subcategory_count } {$lng.lbl_categories|lower}
{/if}
{/if}</FONT></TD>
</TR>
{/foreach}
</TABLE>
{/if}
{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" }
HTML for graphic...
<td style="width: 100%;">
<img src="/skin1/images/title_categories.gif" align="absmiddle" border="0" height="26" width="170"><font class="VertMenuBoxNewsTitle"></font>
</td>
Pardon my ignorance but I hope this is what you wanted and the style in which you wanted it dsplayed.