To Setup Categories:

1. Click Categories under the Products module.
2. Type the category in the textbox  (Examples include:  Clothing, Accessories, Tickets).
3. Click Save.
4. Use the description/password/image link to add information about the category, password protect it from public viewing, or upload a product image that visitors will see on the front end of the site.
5. Click on the blue link under Sub Cats to further organize into sub-categories.
6. The Sort field allows you to change the order that Categories appear in on the front end of the site.