Ok, you are close. You have the head right, but you have one extra line in the footer. This should go in categories.tpl:
Code:
{literal}
<script language="JavaScript1.2" type="text/javascript" src="kcamenu.js"></script>
<script language="JavaScript1.2" type="text/javascript">ACEDisplayMenu();
</script>{/literal}
the one before the body should only be this:
Code:
{literal}
<script language="JavaScript1.2" type="text/javascript">ACECreateMenu();onload=ACELoadMenu;
</script>
{/literal}
You might also have to change the var ace_path='' depending on where you put the javascript files. Same thing for where the acemenu_loader.js is.
If you get totally and completely stuck after trying these fixes, PM me and I can help you out...I've done a ton of these things. But try it out for yourself first.....