Categories and subcategories

[Moose408]

I having issues with categories, subcategories vs galleries and when to use which. I would like to have a hierarchtical structure similar to this site http://ddphotography.org/galleries

I setup up everything as categories but when I add subcategories they don't show up under my categories but instead show up in a different box on my category page. So how do I have a category and then another category appear under it?

Here's what I got so far http://moose408.smugmug.com/

[Moose408]

Alright after spending an hour playing around with galleries, categories and sub-categories I finally figured out my issue. If I have both subcategories and galleries under the same category I was getting the two boxes displayed. By having just subcategories under the category, it is behaving like I want.