Ok - ALL that work just to add a Category area on the right. Whew!
The gist is I can't have an auto-updated labels area because I host my own blog while using blogger software. I figured out a workaround, which is basically adding links to the categories I want to highlight. People can also use the above "search" bar if they want to read about something in particular.
What a pain. Hours of wasted stitching time. *sigh*