Hi Clyde,
Thanks for the template. Everything seems to be working great, but have a question for you. My customer wanted category counts turned on for their site. I've made all of the changes in Admin:

In admin => Configuration => My Store
Code:
Show Category Counts true
Show Category Counts - Admin true [the counts do show up in admin]

In admin => Configuration => Layout Settings
Code:
Categories Separator between links Status 1
Categories Separator between the Category Name and Count ->
Categories Separator between the Category Name and Sub Categories |_ 
Categories Count Prefix  (
Categories Count Suffix )
Categories SubCategories Indent   
Category Counts for 0 Products status: 1 [I do have products loaded, but for testing purposes turned this option on]

I did them all just to make sure I wasnt missing anything, and everything shows up except for the count of the categories. I switch back to the default template and the category counts then appear. In your template, the counts may not display by design, but if you can tell me where I can modify this in your code, that would be much appreciated. I may not even keep the counts on, but needed to present it as an option to my customer.

Thanks!