I'm looking for more robust menu navigation that is provided in the default atahualpa theme. I want something in which I can combine in one menu the placement of Pages and Categories. I am liking Menu Manager, but I can't figure out where to edit the atahualpa theme so that the menu will appear in the header.

I've been following these instructions. Normally it is suggested to update the header.php, but that doesn't seem to be the trick with atahualpa. Somewhere I am suppose to put the code below. Any help would be appreciated.

<ul>
<?php /*If Menu Manger is activated, run it */ if (function_exists('mm_menu')) { ?>
<?php mm_menu(); ?>
<?php /* If Menu Manger is not active, run the usual navigation code */ } else { ?>
<?php wp_list_pages('title_li='); ?>
<?php } ?>
</ul>

try putting it in ATO->Style & edit HEADER AREA->Configure Header Area in place of %pages and %cats