How can I change the order of the text button "categories" - that is displayed above the portfolios. Also how can I remove the "ALL" catagory.
"ALL" is not a category, it is there so after you select a category from the filter you can go back to see all the portfolio items again, it can not be removed.
To reorder categories and portfolio items etc please install Simple Custom Post Order and Go to Dashboard > Setting > SCPOrder and enable custom order for categories and portfolio.
Here is a tutotial on how to use this plugin