Setting up Sub Categories question

Hello everyone,

Question:
How do I get sub categories to display?

I set up normal categories and sub categories through the manage tab, for ex:

1) Games
a) PC
b) Console

When I load my main page, it displays all of them in the same Categories box without it tabbed as created. ex:

Games
PC
Console

I searched the support pages and read about the categories pages not being ‘nest’ed by default, but rather ‘flat’. How do I change this?

Also how could I organize the categories list to a order of my choosing? It appears they all order in alphabetical.

Thanks ahead of time.

Cheers