Everything seems to work fine accept for when I click on the category menu. When I do it does not seem as if SEF is working. An example below

www.mysite.com/classifieds/business?text...order=0&expand=0

#or#

www.mysite.com/classifieds/computers/not...order=0&expand=0

##But I would like it to look something like##

www.mysite.com/cassieds/business

## or even just##

www.mysite.com


All other parts of the site are working well with SEF.
J1.5.15
AdsManager 2.5RC2 (it seems stable, I know I should not use RC's on production sites but I have not see errors)

I have paid and installed the SEF Adsmanager extension. I have updated 2 other extensions that showed update.

Configuration has SEF and rewrite On.

.htaccess file was accessible when I installed Joomsef

What do you suggest, it could be just a config setting that I missed in the SEF setup as I have only just started using it today.