thanks gjh42...that missing piece of information ...to turn on ch_categories in Admin > Tools > Layout Boxes Controller ....was pretty important.

Another point of clarification on the stylesheets. Readme says under Installation if using Uncollapsed Categories Tree to "Rename the main package's stylesheet to stylesheet_categories.css.bak" but under Using Stylesheets it says to "replace #categories with #chcategories in all examples." Do I need both stylesheets?