Prestahop 1.5 theme- new problem found

[MyNawtyToys]

So if I select a category, by default it should give me just the sub categories, but in the new theme I get

"There are 1001 products" with "Subcategories" listed below it. Basically it is taking ALL products in the main category and putting them in there. Needless to say with 20 items per page I have wel over 50 pages of products. Also the "Show xx items per page" does not work. There is adult content on the site so it offends you please do not go to it. Thanks in advance.

Here is the config info just in case

Server information

 

Prestashop Version: 1.4.6.2

Server information: Linux #1 SMP Thu Sep 22 12:47:37 MSD 2011 x86_64

Server software Version: Apache

PHP Version: 5.2.17

MySQL Version: 5.1.58

Store information

 

URL of your website: https://mynawtytoys.com/

Theme name used: prestashop_new