I think you’re a little confused about the purpose of the extension. It should be linking you to the name of the category. So for example, you have the category “homepage” so if you go to your site: index.php/homepage you should see the template you defined in the config page. Also you’ll want to pick a default template (in your image you haven’t done that yet).
Here’s the intended method for working with this module/extension.
1. Create a new weblog to hold your static pages
2. Assign a category group mimicking your site structure, something like this:
About
—Contact
—Directions
Shipping
—Within the USA
—Outside the USA
—Carriers
——UPS
——FedEx
——DHL
Privacy Policy
Terms and Conditions
3. Create a template with the styles you will use for all of these static pages
4. In that template use the variable {static_page} to grab the proper entries {exp:weblog:entries category=”{static_page}” /}
4. In the Pages module configure the module to use the weblog you just created and the template you just created by default
5. In the module you can now edit entries in the selected weblog by just clicking on a category name. Furthermore when you navigate to a category name (on the front end) you should see that static template you selected. In that template the {exp:weblog:entries /} tag should be pulling from the category shown in the url.
Let me know if this makes sense and is how you expected the system to work. If it is how you were working then I’m afraid I don’t understand your question.