Happens to all of us regardless of how long we have been developing so don't worry about it.
At the moment I can have the latest post appear there, but the latest post will appear regardless of what category it is listed under, as the categories/slugs are defined in a second wordpress table/recordset.
As the tables are heavily integrated with the way that wordpress works, I wouldn't know how to go about integrating them, and wouldn't want to try!
Dave - is this the sort of thing that 'SimplePie' does for you?
Yes this is exactly the kind of thing that SimplePie can do, but there seems to be a problem with your rss feed as when I try to view it in a browser I get an error as shown in the attached screenshot.
Thanks, I have been lucky enough to work with some really good designers over the years.