The link that adds in the items category should be controlled by CSSMenuWriter > cssmw_home > menu.php.
In this page in on line 69 should be this:
<li><a href="<?php echo($assumedRoot); ?>Products_Results.php?Search=true&CategoryID=<?php echo $row_menuwriter_productcategories["CategoryID"]; ?>"><?php echo $row_menuwriter_productcategories["CategoryName"]; ?></a></li>
Notice that after Products_Results.php there is the Search attribute set to true and the CategoryID set to the products CategoryID. This is similar code to the category listing on the left side but that is controlled in a different file.