I have set up 5 categories in the dashboard with the 5th having 3 child cats.
Only 3 of them show up in the display bar below the header image.

I do not have any pages excluded in the cat/menubar option.

I have worked all afternoon trying to solve this problem to no joy even upgrading the theme to the latest version.

Does anyone have any ideas on how to solve this problem?

Thanks for reading and any considered replies.

My site is here

1) Do you have posts in each of the categories?
2) what version of atahualpa and WP?
3) What did you set 'ATO->Category Menu Bar->Depth of Category Menu Bar' to?

WordPress 2.8. Atahualpa 3.4

Cat Menu Bar is at 0 default option.

And yes posts are present in each of the Cats? I did rename the uncategorized cat to Everything Else before hand.

Can you install Atahualpa 333. With the CSS issue in 3.4, who know's what problems it could cause.

Also, do you mean to have Depth of Category Menu Bar = 0, this will prevent the children categories from showing up in the menu bar.