Dan
well there is your issue your groups are not anyway near correct. Your names are all wrong you must have installed this incorrectly as a standalone and then went back and correctly installed.
For example in
vb the first 4 groups are this
Unregistered
Registered
Users Awaiting Confirmation
Coppa
Super Moderators
Administrators
Moderators
Thats a normal
vb order from top to bottom see how yours are messed up. A resync is not going to help you because we cache groups so you do not lose your settings a resync will only add new groups.
You must rename your groups as I posted in that order and then set usergroup permissions and then category permissions.