As far as I know you need to buy & install fancy category separately.
I saw the site http://www.creativesplendors.com & I guess they are using FIXED category method. After making the HTML catalog they must have made manually put all category links in the place of category menu.
But this system will only benefit to you if you are not going add new categories very frequently. Otherwise you will need to change your categories display manually every time you add or delete categories.
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