Posts add categories and count – pages empty

A client asked that I add a static piece to the top of their blog, with the blogroll underneath that. I re-designed the page as requested and everything seems to work OK, with the exception of Category links. When a new article is published, it adds the information to the Categories area, with the correct number next to each category. However, if I click on the links, it takes me to a page that says:

Sorry, no posts matched your criteria.

I have tried this with the Permalinks off, but receive the same error. Any ideas what might be causing this? The site is located here

Thanks for any words of wisdom.