Subcategory display problems.

Hi, can anyone help with the following 2 problems (in Business Directory theme):

1. In the categories widget if you opt to display subcategories it shows them all as one big list which doesn’t look good and is far too long. In directorypress you just got the categories and when you hovered over a category you got a submenu of it’s subcategories. Is it possible for the new business directory theme to work the same way?

2. When a category listing page is shown I have it set to display the subcategories at the top but the formatting is very poor – the subcategories are all bunched together and it just looks like a load of text. See screen shot.
It doesn’t matter if you only have a couple of subcategories, it still does the same. This can’t be how it’s intended to display?

Any ideas anyone.

Thanks
Janak