This line occurs in catalog/includes/boxes/categories.php.
$categories_query = tep_db_query("select c.categories_id, cd.categories_name, c.parent_id from " . TABLE_CATEGORIES . " c, " . TABLE_CATEGORIES_DESCRIPTION . " cd where c.parent_id = '0' and c.categories_id = cd.categories_id and cd.language_id='" . (int)$languages_id ."' order by sort_order, cd.categories_name");
Check that you have every item as shown.
Hope this helps.