More info:

As you may remember the category of Necklaces is the only category that displays correctly. All the other categories (Earrings and Pendants) do not display correctly.

If you look below the catagories of Earrings and Pendants you will see an additional blank line not found on the Necklaces page. Using Firebug that line of code is <div class="content" id="indexProductListCatDescription"> </div>
Which is found in includes/templates/template_default/templates/tpl_index_product_list.php However, when I remove the code the only thing that changed was that the blank line was remove. No other correction occurred.

So we have another small issue and no correction for the main issue.