Categories Request, Category Title on Frontpage, Parent/Child Categories Issue

Hello!

I'm having a few tricky issues with my site that I'm hoping you can help me with.

1) Is there a way to make my Categories page into 2 columns, instead of 1 long column? Currently it looks like this. I would like it to look more like the quickly made attachment: categories.png.

2) I removed the blog category title from my homepage, but I would like to put it back. The category is "Latest News" and I need both that and "subscribe to this category" to be visible again.

3) There's something wrong with my parent/child category settings. I have a page titled "uncategorized" which has collected every parent and child category and is displaying the posts from every category there. They are all properly child categorized on the back-end. I can't figure out why the system is behaving this way. For example, if you click from this category: to a subcategory such as "Language Arts," it brings you to a page called "untitled" with Language Arts in the URL.

Thank you in advance for all your assistance!
Sincerely,
Laine