How to show featured products category wise?

@technologyraise: Yes, you can do it. You have to set category_ids param for each Block call. Bellow code is an example:

{{block type="joomlart_jmproducts/list" name="mega.jmproducts.list" template="joomlart/jmproducts/oneproduct.phtml" quanlity="2" category_ids="8" title=""}}

Hi 
Seems that your website is using old version of Jm Products extension. To resolve the issue,
you should update the latest version of Crafts theme & extensions included at http://www.ubertheme.com/magento-themes/crafts/
or you can PM me the Admin & FTP credentials of your site, i will check further current code of your site & tell you solution to resolve.
 
 

@technologyraise:
I have installed latest version of Jm Products in your site at http://zupiterg.com

Can we display featured products in the header as per each category? Right now, I am using featured product block on two categories menu(Home decor & Jewelry) and it displays the same products as in the first category, which isn’t looking good. Is there a way out to this?

=> I have created more the Static Block with named “Featured Products -- (Jewelry)” and with block code bellow as a example:

{{block type="joomlart_jmproducts/list" name="mega.jmproducts.list" template="joomlart/jmproducts/oneproduct.phtml" quanlity="2" category_ids="23" title="featured products"}}

I also edited the static block with named “Featured Products -- (Home Decor)” adn with bellow block code as a example:

{{block type="joomlart_jmproducts/list" name="mega.jmproducts.list" template="joomlart/jmproducts/oneproduct.phtml" quanlity="2" category_ids="3" title="featured products"}}

The issue in “Featured Products” in Top menu was resolved in site at http://zupiterg.com
Have a look & let me know if it helps.