I looked all over for a setting in the theme to change the line around the horizontal menu items from dashed to solid and thought it would be in the "Menu 2 (Cataegory Menu) but nothing there.

Can you tell me houw to do that?

Sometimes there is not a direct setting in the theme options and you have to use a code inspector such as Firebug to determine the CSS selector and add the necessary code to the CSS Inserts box in the theme options.