Ok fixed it so it shows like default now.
Take the modified code:
if (!$context['user']['is_guest'] && (($category['id'] == 0 && count($context['fav_boards']) > 0) || (!empty($category['show_unread']))))
echo '
<a class="unreadlink" href="', $scripturl, '?action=unread;c=', ($category['id'] != 0 ? $category['id'] : implode(',', $context['fav_boards'])), '">', $txt['view_unread_category'], '</a>';
and replace "unreadlink" with "floatright" as below:
if (!$context['user']['is_guest'] && (($category['id'] == 0 && count($context['fav_boards']) > 0) || (!empty($category['show_unread']))))
echo '
<a class="floatright" href="', $scripturl, '?action=unread;c=', ($category['id'] != 0 ? $category['id'] : implode(',', $context['fav_boards'])), '">', $txt['view_unread_category'], '</a>';
It moves the "Unread Post" back to the right of the category line like it should be.
Hope this helps anyone else with this problem ( Lordmiller ).
Note: Remember I'm using Core Theme.