Mine just links to http://www.site-name.com/?cat=8 I’m not sure why it is linking a different way
Nope, I’m using 3.0.4 as well and I’m not having any problems. As long as you are using the events category that is automatically set up by the plugin, you should be good.
It sets up an “Events” category. You just set that category as a page using custom menus. (Have to have custom menus enabled on your theme).