Create a Category at the Top level will show the number of Categories at the Top Level ...
Enter a new Category that contains no Categories and no Products you will see:
Categories - 0
Products - 0
Create a Category in that empty Category and you will see:
Categories: 1
Products: 0
enter that new Category you just created and you will see:
Categories: 0
Products: 0
NOTE: it is not a good idea to use Fantastico on a site once it is installed the first time ... from that point on, you should be managing your Upgrades from clean downloads and following the Upgrade procedure ...
If you load an image into the /images/categories and do not see it in your FTP program, you need to refresh the directory ...
If you do not see it on your site, you need to ensure that the directories are writable and have the right permissions ...
NOTE: the current version of Zen Cart is v1.3.9h which is available from our Home page ...