OK, I found out it worked if I removed the following line:
PHP Code:
<?php if ($show_display_category->fields['configuration_key'] == 'SHOW_PRODUCT_INFO_MAIN_FEATURED_PRODUCTS') { ?>
I also had to move it slightly up in the file to get the result I wanted, but that was obvious at that point.

So it seems to be working now. My main issue is that I don't like deleting code if I don't know what it is supposed to do! What does this line I deleted do normally?