Trouble with Categories

I’m new to wordpress and am having some issues with regard to categories:

Here’s what I see on my page….
Categories

* Categories
o Readings
+ Biblical
+ Poetry
+ Shakespeare

The first “Categories” sits on an image as a heading that’s ok.
Then it lists my posts categories but lists categories at the top which is not a link but the rest is. How can I get rid of the “categories” before the actual list of Readings, then the sub categories?

Here’s my php code:

<h2>Categories</h2>

<?php wp_list_categories(‘all=1&sort_column=name&optioncount=1&hierarchical=1’); ?>

Thanks for anyone’s help.