I fixed a small issue on the last file with multiple classes not separated correctly. I also added a levels identifier for the links, it allowed me to have more fine-tuned control.

Some CSS tips: you can use the multiple classes to drill down exactly how you want different levels to look. For example, I have the links on level 2 (starts at 0 so 1 is 2) turn red when it is the selected category:
#nav li.selected.cat_lev_1 a.link_lev_1 { color: red;}
Note: multiple classes may not work with some older browsers.

Two Main Fixes:

1) Incorporated category levels changes from "yourmanstan". His addition broke the Selected/Parent classes, so that's fixed now. I also added the levels to the links themselves.

2) Moved the category count outside of the link. This is the behavior of the original category box. I liked it better as it gave me more control of modifying how the numbers look.

If you want to change it back, replace lines 187-191 with this:
$output .= ' (' . $products_in_category . ')';
}
}

$output .= '';

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