Some older versions of osCommerce and CRE Loaded sites and sites that we do not host have a setting for the Category name which limits the number of letters allowed in the name in the database setting.

If you host with Inventory Source, we have correctly this issue on your site already.  If you do not host with Inventory Source please see the content below to display your dropship product category names.

Some osCommerce and CRE Loaded versions only accept the first part of the category name and causes the site to take characters that were cut and apply it to the next subcategory.  This can make each drop ship product appear like it is in its own sub category.

The categories_description table is likely set to a field size of 32 for the category name, and that is not sufficient for the levels of categories from most dropship suppliers.  This value should be 64 at least.  It can be changed from the database administration tool. 

Once it is corrected, the easiest correction is to clear out all the products and categories completely and let them be refilled.  This can be done from the database administration tool as well by completely emptying the following database tables:
Products
Products_description
Products_to_categories
Categories
Categories_description