There are no products in the categories menu unless you have some mod installed. What do you have that does that? Clyde Jones' Expanded Categories? That one shows products too, but I wasn't aware that it could be used with Cat Dressing.

To affect sub-subcategories, repeat the ul ul rule for #categories ul...

#categories ul ul ul {/*sub-subcategory list*/
and
#categories ul ul ul a{/*sub-subcategories*/