1.) Can I make catagories for my forums and how? (EXAMPLE)
Movies (this is where people talk about movies)
Video Games (This is where people talk about games)
etc.

2.)Can I make multiple forums for my website and how?

if you want to open multiple accounts for forums wtih subcategories you are welcome to

but why not look at invisionfree or proboards and see about getting a forum there and link to it on your site

those are more category type

Thanks!