You can put both articles and subcategories into default categories. The Article Display Options help you control where the articles display in relation to the categories:
Below subcategories (default)
This option will display an Articles header below your subcategories, with each article and a brief blurb about it below that. Articles will display in the order they appear in the Articles page.
Above subcategories
Use this option if you'd like the Articles section to be at the top of the category's landing page, above the subcategories.
Inline
This option won't put articles in a separate section--it will display them just like categories, using whatever subcategory display type is selected.
Inline Article Display is NOT compatible with the Icon Panels subcategory display type!
