Within the event module, the parent "Events" category is used for this layout, so all categories need to be listed under this parent one. 

The following link lists are also used:

• Events #4 Categories - this controls the colored dot next to each category. The category label needs to be specified in the name field and the hex color value in the description field. 
• Events #4 Default Image - sets a default image for featured events that don't have one loaded in.

The "Events 4 Featured Events" section is where you can update the featured events title and content that shows above the rotator.