how to adapt a template to indent category ‘children’

Nice theme!
What you are looking for is in SideBar.php in your theme directory. Look for the line that reads:
<?php wp_list_cats(); ?>

Change it to something like:
<?php wp_list_cats(‘sort_column=name&optioncount=1&hierarchical=1’); ?>

and see if you like the results.

Don’t for get that empty categories don’t show even if the category below them has something in it.

Hope that helps…
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Brian Layman