How to create Categories similar to Lamebook?

Lamebook has a list of categories with a background image. Anyone know how they do this with the icon/symbol in the corner related to each post?

 

That is simple. For every category in the list, WordPress assigns a class for that category to identify it. The class name is in the form cat-item-xxx where the xxx is the ID number of the category.

In your stylesheet you need to assign a background image for each category list item. In the Lamebook example for douchebags (seemed like as good a category as any) the Html has

<li class="cat-item cat-item-158">
      <a title="View all posts filed under Douchebags/Douchebaguettes" href="http://www.lamebook.com/category/douchebags/">Douchebags/Douchebaguettes</a>
</li>

Code (markup):

The CSS for class cat-item-158 and other rules that may apply are:

#categories ul, #categories li {
  list-style-type: none;
  margin: 0;
  padding: 0;
}

.cat-item-158 {
  background: url("http://static.lamebook.com/wp-content/themes/lamebook/images/cat-douchebags.png") no-repeat scroll 0 50% transparent;
}

li.cat-item a {
  border-bottom: 1px solid #77B5DC;
  color: #0B77BD;
  display: block;
  padding: 9px 0 9px 30px;
}

Code (markup):