Also it seems to me that there should be a way to limit the number of articles displayed. For example if you have a category with 3 articles and one with 15, you will have a very short module in some cases and an extremely long one in others (in auto mode). So it would be nice to be able to set a limit of, say, 5 articles per category.
Also there doesn't seem to be any option to display articles by date???
One major bug: though the module works well for the most part with joomfish, it fails to pick up the translation of the category, rendering it always in english no matter what language is selected. I hope this can get fixed soon and I will gladly raise my rating.
The problem probably are in Dreamhost.
See other success installations below.
Apache have write permission in directory from your site?
Specially in administrator?