thx ajeh for the respond..

im still not sure wht happened here. let me explain how i add my products.

1. admin>catalog>categories/products>new category

i create ex. 3 new category car, cake & ball.
then in the car category i create new product ex. ford, honda & volvo. and the rest categories...

it should appear like this right?

Car
-ford
-honda
-volvo

Cake

Ball

but it doesnt. have i done the right way? wht am i missing?