Intermezzo Portfolio Categories

For some reason I’m having problems getting the Portfolio pages to works as I hoped it should and the way I think it suppose to work. The drop down menu for the Portfolio page is suppose to dsiplay sub nav links to various pages and categories of the main Portfolio Page. I created a page called Production and also created three other pages under this section using Production as the Parent. Each of these pages including the Productions page is assigned the Portfolio Template. I then created new categories to match these pages. All pages display fine with the assigned Portfolio template and items added to the Portfolio display fine. The problem I’m having is that for some reason, based on by setup above, all pages display the same Portfolio content and there is no separation by category as it should be. When I check the rollover on the demo it resolves to Portfolio-category/… but mine is just resolving to Portfolio/… It is just linking to the pages I set up but not referring to the categories I set up. This is obviously my doing but I’m not sure how to correct this. I should also mention that I set up the main menu to include the same drop downs under the Production (Parent Tab). The thing that is weird is that the drop downs , tab names and page names were all fine but even though categories were assigned to each Portfolio item they all display on all pages not just pages named as that items category. Sorry for the long winded explanation but I thought the more info provided the less questions you may have. What am I doing wrong in the setup of Portfolio and its various categories???