Can only view "Uncategorized" category in Theme Options

I’m using Cafe Elements, and I’m a complete noob at this. Several things are troubling me.

I am able to create new categories, however, they do not show up in the Theme Options> Featured Categories (Sidebar) & (Footer). There is a drop down menu there, and the only option is “Uncategorized.” Really frustrating. What am I doing wrong here?

BONUS: 🙂 If you can help me with this too, great! But don’t worry about it. May come back later and ask, but figured I’d try while I’m here. http://www.press75.com/themes/cafe-elements/ That’s the theme. On the right side, you can see the little thumbnails with “Our Menu,” “Breakfast Menu,” etc. I’m not sure what I did, but on my site (www.foxchasedeli.com), those pictures have disappeared.

Thank you!