I am trying to add a sub category but when i click on the folder of the categorie I want to add a sub category to under Category/Products in Admin I don't have a button for new Category. I have a new Product button but nothing for category, can anyone help me on this?
It sounds like you may have products already in the category? If so you will not be able to add a subcategory.
I had this at one time and I renamed the existing category and created a new category with the name I wanted, then added subcategories and then moved the items from the renamed category into their proper sub categories.
You will not be able to put products back into the top category when there are subcategories.
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