I think the LABEL function has a bug… If I choose NEW or HOT for a product, it shows great in the homepage but in the category view EVERY product in the same line shows as NEW or HOT!!!
So, a product with Label triggers every product in the same category line to show the same label, even if the other products have label set to NONE or different from the first.
I tested this on your DEMO and there is the same problem…
