I've been searching the forums up and down for a way to resolve my issue and after exhausting every related post I could find no solution.

The website I'm working with is http://dctractor.com/catalog/
.

What I am trying to do is setup my category box to make it easier to read. I want to accomplish this by creating a bit of space between different categories, but I want subcategories to appear directly below the category, then for there to be a space after the final subcategory and the next category.

In example, I want it to look like this:
Code:
Accessories
      -Cleaning Products (Subcat)
      -Covers                (Subcat)

Chain Saws and 
Parts

Engine Parts and 
Accessories
Some solutions I've tried involve adjusting the margins, but then instead of reading how I want it to, it will put a space in between category names that extend across two lines making them read:
Code:
Accessories

    -Cleaning Products

    -Covers

Chain Saws and

Parts
This could easily confuse our customers, so it is not acceptable. Is there anyway I can get my categories to read how I want them to?

I hope this made sense, but let me know if I need to clarify.

Thank you in advance.