Magnus Backhurst

Well I want to make my own.
I already know how to css it and make the hover thing work.
The problem I am having is how to I customize the output when getting the category listings?
I can output them as a ul with li’s in it but how do I make it so subcategories is made another ul with li’s?

??

In my archive.php file i was using the_excerpt(); and now I just changed it to the_content();
Should I do something else or is that enough and without bugs. ??

Where is my category template? When I hear that I directly go into my theme folder but that’s not right is it?
If I am to find my category template where should I look? ??

I will read the info about the templates later when I get home.
Hopefully that can help me achieve what I want.
The only thing edited from standard wordpress now is my theme.