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I'm not sure if you're familiar with SQL or not, but that is part of the SQL query that is retrieving the category records. The part that I'm having you remove is the section of the sql query that actually sorts the categories. But for some reason, the sort column isn't being filled propertly. I guess if you wanted to still have them sorted, that you could replace it with this:
Original
$result=$xoopsDB->query("select cid, title, img FROM ".$xoopsDB->prefix("ann_categories")." WHERE pid = 0 ORDER BY $classm") or die("Error");
New
$result=$xoopsDB->query("select cid, title, img FROM ".$xoopsDB->prefix("ann_categories")." WHERE pid = 0 ORDER BY title") or die("Error");
All I did was replaced the $classm variable with the actual column that we want to sort by (title).