You have many categories and so they wrap around and create a second line.

An alternative would to be to use sub-categories i.e. Create a category for Jewelry and then put all your Jewelry categories under that main category.

Please, check  your error log and post the results here, if any and please give us more detail when a problem arises. The devil is in the details.

So what I did to get this working is edit hidden.tpl and replace it with this:

<input type="hidden" id="current_url"  name="current_url" value="<?php echo 'http:/domainname.com',$_SERVER['REQUEST_URI'];?>" <?php echo $attr ?> />

Then I changed the Field Name & Display Name in the Forms Manager to "current_url" for the Hidden Field Type
You can replace your domain name in place of "domainname.com"
I dont know how this effects anything else with a hidden field, but I only have that one so this works for me.

Good job and well solved, thanks!

Thanks for all the hard work guys, especially Dmitry who fixed a few issues today.

Here is what the successful upgrade looks like!

https://naturalhandcraftedsoaps.com/secure/

The only caveat is an error being generated, that makes no sense. 

App Error  Message status: critical Date:06/26/2015 04:08:43 PM Number of repetitions:14 Error: cannot to load config.xml of extension coupon. in /home/bigzbeve/public_html/naturalhandcraftedsoaps.com/secure/core/helper/utils.php on line 527

I had no coupon, so it seems to be an error with the core somewhere.

The error caused no issues, but I have not tried to create or use a coupon, but it's on my list to do!

Big HINT!

If you have done any customizing, make sure you back up the altered files, this upgrade will change the style.css, page.tpl, footer.tpl and product.tpl as far as I can see. Those are the only customizations I made and it changed them back to the default. Simple to get the customizations back, I had them backed up in a seperate file.
 

I applied the auto update and it said it installed correctly, however, I now have this error in my admin panel, although everything seems to be working fine.

 Message status: critical Date:06/26/2015 01:27:40 PM Number of repetitions:14 Error: cannot to load config.xml of extension coupon. in /home/bigzbeve/public_html/naturalhandcraftedsoaps.com/secure/core/helper/utils.php on line 527

have you cleared your cache in the admin panel again?

Good deal, and thanks!

Those are CSS statements and there is an inherent gap between the categories and the featured block, that is normally used by the banner slider or the welcome message.

It can be reduced, but be careful if you don't know what your doing, modifying the style.css.