Well... problem one is because of the space between categories hack - I'm sorry but it's not my hack and I don't know this very much but I don't think that could be canged so easily - this is added under each space and how should that hack know if there are only categories?
The second problem is because of the mouseover hack. That one addes a onClick to the <td> so if you click anywhere in the cell you are directed to the link in THIS window. If you click on the link, that one is opened in a new window because of the link and in the same window because of the cell onClick. You could simply remove the
Code:
onClick="window.location.href='forumdisplay.php?s=$session[sessionhash]&forumid=$forum[forumid]'">
from the linkbit templates, should work...