I've upgraded to .85 and since doing so I can no longer get any categories to display as sub-menus. I've tried deleteing and re-creating the categories, but no luck. I updated the module twice to ensure upgrade stuck.

As I'm just starting with this module I was easily able to uninstall and then reinstall the module. Once this was done the categories functioned as expected. But, if you are upgrading from .7 with data you cannot afford to lose, re-installing the module may not be a preferred solution