[Victor D]

For 4.2.1 (home.php code is the same with one from the post#2)

skin1/customer/main/subcategories_t.tpl:

{*
$Id: subcategories_t.tpl,v 1.6 2008/11/25 15:57:54 max Exp $
vim: set ts=2 sw=2 sts=2 et:
*}
{foreach from=$subcategories item=subcategory}

  <div class="subcategories" style="min-width: {$subcat_div_width}px; width: {$subcat_div_width}px; height: {$subcat_div_height}px; min-height: {$subcat_div_height}px;">
    {if $subcategory.is_icon}
      <a href="home.php?cat={$subcategory.categoryid}"><img src="{$subcategory.icon_url|amp}" alt="{$subcategory.category|escape}" width="{$subcategory.image_x}" height="{$subcategory.image_y}" /></a>
    {else}
      <img src="{$ImagesDir}/spacer.gif" alt="" width="1" height="{$subcat_img_height}" />
    {/if}
    <br />
    <a href="home.php?cat={$subcategory.categoryid}">{$subcategory.category|escape}</a><br />
    {if $config.Appearance.count_products eq "Y"}
      {if $subcategory.product_count}
        {$subcategory.product_count} {$lng.lbl_products|lower}
      {elseif $subcategory.subcategory_count}
        {$subcategory.subcategory_count } {$lng.lbl_categories|lower}
      {/if}
    {/if}
  </div>
                        {*mod starts*}
                            {if $s_products[$subcategory.categoryid] ne ''}
                            <ul style="float:left">
                                {foreach from=$s_products[$subcategory.categoryid]  item=sprods}
                                    <li>{$sprods.product}</li>
                                {/foreach}
                            </ul>
                            {/if}
                        {*mod ends*}


{/foreach}

<div class="clearing"></div>

skin1/customer/main/subcategories_list.tpl:

{*
$Id: subcategories_list.tpl,v 1.5 2008/11/05 14:22:39 max Exp $
vim: set ts=2 sw=2 sts=2 et:
*}
<table cellspacing="0" summary="{$lng.txt_list_of_subcategories|escape}">

  <tr>
    <td>
      <ul class="subcategories">

        {foreach from=$subcategories item=subcat}
          <li>
            <a href="home.php?cat={$subcat.categoryid}">{$subcat.category|escape}</a>
            {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}
                        {*mod starts*}
                            {if $s_products[$subcat.categoryid] ne ''}
                            <ul>
                                {foreach from=$s_products[$subcat.categoryid]  item=sprods}
                                    <li>{$sprods.product}</li>
                                {/foreach}
                            {/if}
                            </ul>
                        {*mod ends*}

          </li>
        {/foreach}
      </ul>
    </td>
  </tr>
</table>

this is a basic way to insert products. You may improve layout according to your requirements.