How to edit this theme so that it displays catagories instead of pages?

[DinoEntrails]

Ok, I have this site I am making for a friend of mine. He is using it as a page for a group, and wants to have links in the header(below the actual title) be the catagories, instead of pages. That way, he can catagorize his pages as things like "announcements" or "photos" and they will all appear when you click on the link at the very top. Currently, it only displays the pages and a home link. I have found where it is in the header.php file, and i need to know how to edit it to perfection, or manually add links even. Here is the part as it is.



<div id="navbar">

<div id="navbarleft">
<ul id="nav">
<li><a href="<?php echo get_settings('home'); ?>">Home</a></li>
<?php wp_list_pages('title_li=&depth=4&sort_column=menu_ order'); ?>
</ul>
</div>

<div id="navbarright">
<form id="searchform" method="get" action="<?php echo $_SERVER['PHP_SELF']; ?>">
<input type="text" value="Search this website..." name="s" id="s" onfocus="if (this.value == 'Search this website...') {this.value = '';}" onblur="if (this.value == '') {this.value = 'Search this website...';}" />
<input type="submit" id="sbutt" value="GO" /></form>
</div>

</div>

[janetra]

Replace <?php wp_list_pages('title_li=&depth=4&sort_column=menu_ order'); ?>

with

<li><a href="http://xxxx.com/category/yyy/">category 1</a></li>
<li><a href="http://xxxx.com/category/www/">category 2</a></li>
<li><a href="http://xxxx.com/category/zzz/">category 3</a></li> etc

[michellejane]

# First install category page by pixline.
# Download the plugin Zip archive.
# Upload `Category Page Extender` folder to your `/wp-content/plugins/` directory.
# Activate the plugin through the ‘Plugins’ menu in WordPress.
# Setup some relationships between Categories and Pages using the Category Page plugin .
# Tweak `page.php` in your theme folder .