CSS for indenting child categories in WordPress

I’m using the AVH Extended Categories plugin to control the display of categories in a new blog, and was having problems getting it to show the hierarchy in a user-friendly way. This code below will do the trick for up to 2 levels of child categories, the background-position is for the bullet image already included in the main list styling. This isn’t really AVH specific, it can be used for any vertical menu, and the class ‘children’ is something WordPress automatically applies to all the subpages of a given parent page.

1st child level:

2nd child level:

Here’s the styled nested menu in action (left sidebar).

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