Product Master Categories and CSS alteration?

Hello!

I have a few customization questions for someone. I am trying to get my store to have the colors of my website rather than the WebAssist blue.

You can find my store here: store/

Question #1)
Is it possible (easily) to have the Category master category display ALL of the selections in the subcategories as well. For example: In my store I have a category called Puppets, and a sub- category called Stage Puppets. When I click on the Puppets category - NOTHING is displayed. One has to click on the Stage Puppets sub category to see the products. Why can't these products display under the master category as well as the subcategory? One would think if you clicked on Puppets you would see all puppets available, then if you clicked on Stage Puppets, only the Stage Puppets would show. It seems counterintuitive.

Question #3) I have been altering the CSS in my store. But cannot figure out for the life of me where to change the color of the product navigation on the left if you've selected a product. It keeps coming up WebAssist blue. I have spent a lot of time reverse engineering this CSS - anyone found this line yet - according to my FireBug it resides here:

element.style {
background-color:#3375A2;
border-top:0 none;
color:white;
}

But no document info is given for which CSS file that code can be found in. Anyone know where I find this in the CSS to change the background color? I even did a search for that code - and it came up with nothing, I'm very stumped.

Thanks!

Carlene