I have blog www.ourlifewalkabout.com and interested in replacing the color widget sidebard boundary which is currently not there (I made the boundary value 0). For example eventually I will have categories including all the countries I'm visiting and I would like to have icons of the country's flag. Thanks - Love the theme once I figured it out.

Maybe the best way would be to somehow get rid of the theme CSS for just my "folding categories" plugin/widget if possible.

If you mean the line breaks caused by the category count displayed after the link, add this as CSS Insert

div#foldingcategorylist-1 ul li a {
display: inline !important;
border-left: none;
}

To add styling to the li elements

Main items

div#foldingcategorylist-1 ul li.lwfcl_level-0 {
background: url(/path/to/image.gif) no-repeat top left;
padding-left: 20px;
}

Sub items

div#foldingcategorylist-1 ul li.lwfcl_level-1 {
background: url(/path/to/image2.gif) no-repeat top left;
padding-left: 20px;
}

padding-left = [width of image] + [space between image and text]