To get rid of the words "Pages" and "Categories" open up the sidebar.php and find them (they're enclosed in <h3> tags). Delete that particular line for each case - problem solved.
As for the margin and bullet points, like jabberwocky said, but you only really need one section, plus your font call:
Code:
ul {
list-style-type: none;
margin: 0 0 0 5px;
font: "Century Gothic",fantasy;
}