Can't figure why the categories don't show in the menu bar on this site http://digitalvillage.org.uk/postcards/category

they do show up in the sidebar

Are you really using Atahualpa 3.3.2? Please upgrade to 3.4.6 - backup your database first. If you manually install, you can have both theme versions installed and switch back and forth.

is the issue of the category problem really an issue born of the theme version I am using. I'm reluctant to upgrade because I've hacked stuff a bit on the commenting front.