These pages are created automatically by the system and styled in the WP-Drudge template. They exist on your site already, whether you use them or not. You can create links to category pages using the 3 ways listed above for Pages: manually, by using the Categories widget, and by using a Menu. You can also check the “Category listing” option on the WP-Drudge options page Other tab.
Category pages are built automatically but you can control some of the display options on the WP-Drudge options page Other tab. Also, you can control the number of links that appear here using the “Blog pages show at most” setting under Settings > Reading.