Categories Spaces with a twist - help please

[WNxWakko]

I know about this link, its cross referenced by hundreds to add a space between categories.
http://www.vbulletin.com/forum/showthread.php?t=156783 <-- This doesnt work for my case.

However, my skin has borders, and I need the space, but the problem is shown below. No matter what I try and do, it wants to draw the sub category into the main category header inside the forum display. My forum home looks fine and as long as I dont put any sub categories inside a category its fine. I want to be able to create sub categories that break down like categories you would see on the forum home.



I have looked and looked, but no one has code that breaks forumhome categories without causing this problem.

Any solutions?