Portfolio Items and regular Posts getting mixed up

Blog page:
http://www.craftworkprojects.com/blog/

On my blog page, the categories and tag cloud is displaying tags and categories pulled from portfolio items, not just from normal posts. I want to keep blog posts and portfolio items separate.

Additionally, if I choose a grid layout for blog posts, portfolio items will be included in the list, but this does not happen with the list style presentations.

Originally, I had created all of the current portfolio items as regular posts, and then used a conversion tool to convert them all to portfolio items – could this be anything to do with the problem?

Please help!