First, let me say I wish I had been using K2 long ago. It is a recent discovery for me and I've realized I could have saved many headaches in developing my website if I had just used K2.

For the most part, I have figured most features out (still a couple of bumps). I am trying to do the following and I am sure it is just a setting somewhere. I was hoping someone could point me in the right direction.

I'm having trouble with my layout as I get deeper into nested categories. I am attemping to organize a little. I would like to accomplish the following layout:

CATEGORY 1
subcategory, subcategory, subcategory, subcategory,

CATEGORY 2
subcategory, subcategory, subcategory, subcategory, subcategory

The layout doesn't have to be like this exactly but I have a huge number of categories and subcategories and am looking for a way to organize them...and to show a list of categories under its main categories (without having to click on the main category).

That is not the way k2 normally does it, as i am sure you are aware.
If you have a template that has grid positions you could put a mod_k2_content in several positions to accomplish the same thing.
If not a very custom Category.php would be needed

Yikes....That is what I was afraid of. Thanks for your response William, I appreciate it.

I'm not completely set in doing it that way, but am looking for a bit of organization. I'd like the title to each subcategory to show under the main category...and so forth down the chain.