Sorry, but I don't get it.
We are not using the forum-style layout...
This option is set to NO
Do you want to use the forum-style layout?
Yes is the default setting, No uses the thumbnail gallery layout
So, categall.tmpl and categories.tmpl are same template? If i edit one the changes should take place in the other?
If you look at the source coe, t says categall.tmpl and not categories.tmpl