Feature sites are category specific. A category will always show it's own featured site, unless there's not one defined, in which case, it'll revert to using the default featuresite.
Using this console, you can remove a site from the featured list. Note, that this will not delete the site altogether, just from the featured site list.
In order to make featured sites show up on your templates, you'll need to first place the PLUGIN in your template, then design a feature site listing template to tell Hyperseek how the featured site should be drawn on the browser when the plugin is run.