One last qurik and I can figure this out why this is happening.
 
Desired layout
Group1
Item 1
Item 2
Item 3
Group 2
Item 1
Item 2
Item 3
 
What I'm getting is this;
 
Group 1
Item 1
Item 2
Item 3
 
etc ...
 
Group 1 parent category is root
Item 1-3 parent category is Group 1
 
But I expected things to be left aligned, they seem staggered for some reason.
 
It's too bad I can't post a couple screen shots of this, so you can see what I mean.
 
Any ideas why the format is so messed up?