There was a bug in thein and now fixed in . In when you selected “ ” as the Menu Item Type, the option to select categories was not there. The description of the “ ” menu type is:
Show allfrom one or multiple categories in a single or multi-column layout.
Now inthere is a to select categories when you are in the and create a Menu Item Type = Featured Articles. Steps to create a Featured Article Menu Item:
1. Login to your1.7 administrator backend
2. Click on Menus, Main Menu, Add New Menu Item
3. Menu Item Type = Featured Articles
4. Select categories
5. Click on Save & Close