Hi, Barbara (and Lynda)!
I've asked one of our DNA Project members to contact you about setting up the categories for your DNA information.
To answer your question about categories: When a category shows up in red, it means that it doesn't exist and might need to be created. I say might, because sometimes it's a case of misspelling or just not having the correct category name.
When that happens, before you create a new category, it's always best to go looking and make sure that you haven't used the wrong category name or misspelled something. So, I suggest using Find > Categories from the Help menu to look for the higher-level category where the category you need belongs.
All that said, I know that it's not as easy as I just made it sound!! :-) It takes some time to get familiar w/ the structure of categories. So, just be patient with yourself, and don't be afraid to ask in G2G if you're not sure whether or not a category needs to be created.
We've all been in your shoes before, believe me. :-)
Just for good measure, here's the Categories help page. (Can also be found on the Help menu: Help > Category Usage)