Menu Reconfig

Strivin To Be Green is set up as a sub site of Patriot Star News.

I have a post in the food & dining category. In Daily Theme, at http://patriotstarnews.us/strivintobegreen/category/food/ even though the theme automatically creates this link in the menu because it is a category, they do not result in displaying any articles. The link is a 404.

Alternatively, if in Theme Options> Menus and assign the categories to the "main menu" it does create menu links for those pages but say for example, the Food & Dining, it redirects to http://patriotstarnews.us/strivintobegreen/2011/10/30/food-dining/ which is 404. And because catageories automatically create links in the menu (even though they are links to nowhere), I end up with two identical menus if I try to solve the problem through menus.

So what I need to know is what is the best way to make sure that the categories show up in the menu (once) and actually lead to posts for that category. Or instead of categories, should I use pages with the list articles/cat plugin - but if I do this, I still am contending with the links to nowhere in the menu that are created automatically by the post categories.