Wordpress Blog Fix

Current blog is Wordpress and can be found here: [login to view URL] Our main page does not have to be touched. We would like a template created that will perform the following actions: A theme based blog so that when a category is selected, only those posts that are linked to the category are shown on the right hand menu as “Recent Posts”. Below those posts, all categories should also be shown in the right hand menu. In this way, when a visitor clicks on one of the categories, only those posts specific to the category are shown on the right. They can then decide to click on another category from the right-hand menu and only view posts specific to that category.