Category Page Shows This Error…

Here is the code for my categories page:

<?php define('WP_USE_THEMES', false); get_header(); ?>
<div id="content">
<?php get_sidebar(); ?>
<div id="main">
<?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>
<?php endwhile; else: ?>
<p><?php _e('Sorry, no posts matched your criteria.'); ?></p>
<?php endif; ?>
<?php endwhile; ?>
</div>
</div>
<?php get_footer(); ?>

And here is the error when I try to click on a category link from the post’s meta data:
Parse error: syntax error, unexpected T_ENDWHILE in /home/site/public_html/wp-content/themes/theme-name/category.php on line 9

I have searched the WordPress Forums and I have found similar issues but after attempting their claims to a solution, I am still experiencing the same problems.

Here are my current settings.
My site is using WordPress version 2.8.6.
My .htaccess file is set to 777. Here is how it looks:

# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

# END WordPress

My Permalink Structure is /%category%/%postname%/
My Optional Category Base is set to “.”

A working example can be found at the link below. In order to recreate the error message, please click on the category “Featured” underneath the jQuery slider.

LINK-
http://www.robinsonscountrypleasantrees.com/

Can anyone out there help me? I have tried the “Top Level Categories” plug-in and it did not work well with this situation. Thanks in advance to anyone that is willing to look into this.