I'm having trouble displaying subcategory blocks in Magento. I have followed several solutions posted on here and this tutorial.

I created a static block with this code:

{{block type="catalog/navigation" template="catalog/navigation/subcategory_listing.phtml"}}

I also tried placing it in page/html/ as this was a solution I saw elsewhere.

Next I updated the settings on all top categories to:

Display mode: Static Block only

CMS Block: Sub Category Listing

Then I created the subcategory_listing.phtml file:

<div class="category-products">
<ul class="products-grid">
$categorycount = 0;
foreach ($_categories as $_category):
$layer = Mage::getSingleton('catalog/layer');
$catName = $this->getCurrentCategory()->getName();
if ($categorycount == 0){
$class = "first";
elseif ($categorycount == 3){
$class = "last";
$class = "";
<li class="item <?=$class?>">
<a href="<?php echo $_category->getURL() ?>" title="<?php echo $this->htmlEscape($_category->getName()) ?>"><img src="<?php echo $_category->getImageUrl() ?>" width="100" alt="<?php echo $this->htmlEscape($_category->getName()) ?>" /></a>
<h2><a href="<?php echo $_category->getURL() ?>" title="<?php echo $this->htmlEscape($_category->getName()) ?>"><?php echo $this->htmlEscape($_category->getName()) ?></a></h2>
if($categorycount == 3){
$categorycount = 0;
echo "</ul>\n\n<ul class=\"products-grid\">";

and finally in app\code\local\Mage\Catalog\Block\Navigation.php I changed the getCurrentChildCategories() function to this:

public function getCurrentChildCategories()
        $layer = Mage::getSingleton('catalog/layer');
        $category   = $layer->getCurrentCategory();
        /* @var $category Mage_Catalog_Model_Category */
        $collection = Mage::getModel('catalog/category')->getCollection();
        /* @var $collection Mage_Catalog_Model_Resource_Eav_Mysql4_Category_Collection */
            ->addAttributeToFilter('is_active', 1)
            ->setOrder('position', 'ASC')

        $productCollection = Mage::getResourceModel('catalog/product_collection');
        return $collection;

This answer suggested it might be an issue with Magento caching static blocks, however disabling the cache on Blocks HTML makes no difference. Does anyone have a solution? is there an extension I can use instead?

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