Adding a New Catagory

I am confused. I am trying to add a New Main Category, but the button just is not there. Gives me add new Product, but no new category. If i click on a catagory that is already there, then it gives me add a new category, but not the main category list. Can some please help?

Thanks
Jonathan

Categories hold Products OR Categories ...

If a Category holds a Category, then the New Product button vanishes ...

If a Category holds a Product, then the New Category button vanishes ...

Mixing the two results in incorrect displays, searches, prices and the like ...

I have 2 main categories.
Then I want a new category, with ONLY categories inside, and then the products. Is this possible?

Category->Category->Category->Products

Now I only get "create a new product at the second cagegory folder.

Categories hold Products or Categories ... never both ...

Once you add a Category to a Category, the New Product button will vanish ...

Once you add a Product to a Category, the New Category button will vanish ...