Need help to make directory work - have followed every instruction available

Hi there
So now I have spent three days on this and am thinking this is not a good investment of time or money. I really hope you can show me I am wrong!

I have followed all of the instructions for installing directory, set up a basic taxonomy and some categories, and added test listings. I have read all the posts, forums, etc
1) The categories do not show the listings
2) The listings do not appear properly
see :

And then, while I'm asking:
3) How do I filter listings? eg if I want to see a certain category - but only those entries for the relevant geographical region - how do I do this? There is no use having a business directory that shows ALL of a particular type of business in the entire country!

Your urgent help is requested. As others have mentioned, the only reason I paid a subscription to this service was for this product. If it doesn't deliver, then this is very problematic.