1. I would like to know how does one add a menu catagory-- I can add items manually just fine.. but so far haven't been able to figure out how to add a new catagory.
The menu is generated the same way the XFCE menu is generated.... xdg or something like that... I'm really not sure how to do it either, but if you can find an xfce guide somewhere, try that... it may work
2. Is there a way to configure the clock to show the seconds also? if So how.
Yes there is. If you are running lxpanel-0.3.5.6 (like me), you can right-click on the clock and point to "Digital Clock Settings".
If you are running al older version, you'll need to access the panel settings window... point to the "Add panel applets" thing. Click on Diginal clock, and then hit the edit button.
Both procedures will take you to a little window that has the clock format definition... in this box, enter this
That will display the clock like "10:00:05 PM"
I really like this desktop too... I haven't used anything else since I discovered it