Menu Errors

My host, Ipage, is telling me that we have error codes with the
Highend Theme.
My menu is out of wack.
http://www.RawK9.com
It will not allow me to have different products subcategories, under further subcategories
under the product page. It will only allow me to have flat menu, ie:

Home
Products
Blue Ridge Beef
Complete Balanced Raw Mixes.

I had 3 previously…ie:

Home
Products
—Blue Ridge Beef
——–Complete Balanced Raw Mixes.

When I am at menu options in Dashboard, normally I just click and drag items on menu to the right to make a subcategory, it will not allow this anymore…it will only allow for 1 level of subcategories and then when I click save menu, it reverts to a flat menu…

Any ideas?

Thank you in advance!
Ray