First, one license equals one installation of UBB.
To create categories, go to Forum Settings and click on the create categories link. Create whatever categories you want, following the instructions on the screen paying particular attention to the part about including cat names in brackets, i.e., [Category 1][Category 2] etc.
Once you've created your categories submit them. Now go back to forum settings and assign each forum to a category. Any forum not assigned to a category will not display on the forum summary page (Ultimate.cgi).
Now go to General Settings and look for the display categories option and make sure it is on.
Thats it.
