Ugh, no bullets in categories

I upgraded to 1.5 and on the right-hand sidebar, my Categories section now displays all categories in a single flush list. I like how it was done in 1.2 where the parent category was displayed followed by child categories in bullets below them.

Not sure why this was changed in 1.5, but how do I get it back to 1.2 style? I’ve looked at the CSS file a bit and am thoroughly lost.

Thanks in advance for all your help.

Blog is at http://www.bloggedy.com so you can see what I’m referring to.

Cheers,
Todd