This vQmod will change your latest products so they work based on the current category, showing the latest products in that category if you're on a category page. It will also auto-hide if there are no latest products in that category
NOTE: YOU WILL NEED TO HAVE VQMOD INSTALLED TO USE THIS EXTENSION - See http://tinyurl.com/vqmodoc or http://vqmod.com/

Features
-- Supports multistore
-- Supports multi currency
-- Hides when no products in category
-- No files need overwriting
-- Full caching for optimal performance