Beth-katherine: None of your questions are related to Categories Dressing, but here goes:
1) If the category markers were list-item elements, you could change list-style-position: from inside to outside. But you are using Better Categories, which places the markers as foreground images inline at the beginning of the category name text. There is one way to achieve what you want, by tricking the category name. Add this to your stylesheet:

.betterCategories a.category-top { text-indent: -1.8em; padding-left: 1.6em;}

This will move the beginning of each text element to the left, and add padding to shift the whole thing back to the right.

2) For space above the listing image, add this to your stylesheet:

.listingProductImage { margin-top: 1.0em;}

Adjust to taste.

3) I found the file where this is set once a long time ago... best to post this question in a more appropriate place where those who know may see it. If I can, I'll try to answer the question there.