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<?php //Add this to your local.xml - removes category filter from sideabar. ?>

<catalog_category_layered>
                <block type="catalog/layer_view" name="catalog.leftnav" after="currency" template="catalog/layer/view.phtml">
                 <action method="unsetChild"><child>category_filter</child></action>
                </block>
</catalog_category_layered>