Virtue: Portfolio Carousel Category Type

I am using the free Version of Virtue and have been trying for days to set up the Portfolio Carousel. Problem I am having is when I click on: Appearance>Home Layout and go to the Home Portfolio Carousel setting and then Portfolio Carousel Category Type it just says
No items of this type were found.
This has been driving me nuts…please can anyone help as I just haven’t a clue as to what I am doing wrong?