Yes, @teh_g is correct, global moderators are special in that they will always have moderate privilege outside of the privileges page. Unfortunately it doesn't look as though you will be able to restrict gmods from their moderation privileges for this forum -- it's quite an odd use case!
[Solved] Theme Lavendar: Categories overlap if the above category has an image.
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you can see it (mostly on chrome) at californiamotorcycleforum.com If i refresh there's a 50:50 chance it'll be fine. It appears that they're properly spaced when it's just text. The longer the image the worse it seems to be.
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Fixed