Category has SubCategories Products cannot be added

[m4w29c]

Ver. 1.3.8
New install.
Added category and product, attempt to add product in second category created but the "Note" in the title was displayed and I get the following when I attempted to add product

Categories / Products - ModernDog & Cat Food
Search:
Status - Disabled
Go To:
ID Categories / Products Model Price/Special/Sale Quantity Status Sort Action
Categories: 0
Products: 0 Back New Category


Then,

when I clicked "New Product" I got



Page Not Found

The page you tried to access does not exist on this server. This page may not exist due to the following reasons:

1. You are the owner of this web site and you have not uploaded (or incorrectly uploaded) your web site. For information on uploading your web site using FTP client software or web design software, click here for FTP Upload Information.

2. The URL that you have entered in your browser is incorrect. Please re-enter the URL and try again.

3. The Link that you clicked on incorrectly points to this page. Please contact the owner of this web site to inform them of this situation.

I need help! I am not an SQL person and have only the experience from zc in phpadmin, which is to say a monkey could do better...

I have not made any changes using PHPAdmin, I can't seem to get to the tables. I did change the product type, product-general (added a picture) and it is set to upload to the Main Directory.

It seems that since there are sub-categories, I am not able to add product ID categories.