Help with Siloing

I followed the instructions for creating silos. When I go to a category page, the blog posts are supposed to show up in the menu in the sidebar. Instead, the categories are still there.

I know it’s a setting, but I can’t figure out which one. the site is
http://www.felinecerebellarhypoplasia.com. It’s a testing site I set up for my wife.

Any help would be appreciated.

http://wordpress.org/extend/plugins/seo-ultimate/