it does what it is suppose to do. Remember each category can have multiple posts associated with it. For example if you have the category 'fruit' you might have a post about apples and another about oranges and another about grapes so looking from the category you would have
HTML Code:
fruit
*
** apple
*
** orange
*
** grapes
and lets assume you have a catefory of 'red' and you assign that category to 'apple' and 'grapes', then apples and grapes are associated with multiple categories.
the %categories-linked('delimiter')% (note the plural) shows the list of categories and when you click a category name it always takes you to a mullti post page showing all the posts in that category, even if there is just one post currently in the category.
my question is: What are you trying to do and why?