It is subtle, but look at it side by side and you'll see it. It's like there is a closing div tag missing somewhere in a Wanted template.
sidebyside.jpg
This problem exists ONLY in wanted ads, no where else in the classifieds or in the forums, this is what lead me to believe it is not style related.
As for the categories, what I was trying to show was that the whole layout of my main classifieds page changed drastically, including the categories, comments, and random ads. The ONLY thing I did was upload the pp-inc.php file, refreshed, and saw the difference you see on those two images. Nothing else was changed. If I upload the old file from the previous installation, everything is back to the way it was. The image with the arrows shows the layout as I like it, with the two main categories (For Sale and Wanted) and then 1 level of sub-categories under each. All of that goes away when I upload that new pp-inc.php file, and I don't know why.