New install v 1.5

I'm going for rookie of the year here. Hoping I don't win it multiple years.
I sell a single product with accessories. didn't think a needed categories so deleted them all. Now getting error message on my product page:

"WARNING: You have Products in the Top Level Category. This will cause pricing to not work properly in the Catalog. Products found: 1.

Been all through the FAQ's, the forums but . . .

Any ideas?

Thanks