A while back I must have set the category for merchants... now I can't find where to change it in the admin panel. I'm referring to the category that shows up in their user area for adding products.
 
I hope I'm making sense.

Greetings!
 
Administration> Products> Edit category> Access Levels

Hmmm... thanks for the reply! I'm not sure what that does, but it's not it.
 
I did finally find it here:
Administration > Products and Categories > Edit
 
Then check the box next to "Allowed Post to Subcategories"
(merchants can post their own products to the subcategories of this category)

(wishing there was a report post button for the dating spam above...)
 
Anyway, I realized that the "Post" option under Access Levels does the same thing as the "Allowed Post to Subcategories"

Administration> Products> Edit category> Access Levels
To check up Post and below
Save these subscriptions settings for all subcategories
Save these subscriptions settings for all products in this category
Save these subscriptions settings for all products in all subcategories