Hi Heidi,
When using categoryze_by_function.py, I get files in tab format, that I can open whith a simple text editor or with an Excel-like program. Did you check what's in the .picrust file when you open it?
You mention you did this final step 'online', I suppose you mean with the Galaxy instance available at Huttehower lab? I'm on the categoryze_by_function tool and I see a box "Type of output", did you tried it?
However, even if you don't get a biom file with the online tool you can convert it using this command :
biom convert -i your_picrust_file -o output.biom --to-json --table-type "OTU table"
"--to-json" option wile make a biom version 1.0 file (compatible with PICRUSt), you can replace it with "--to-hdf5" to get biom version 2.0 file.
"OTU table" can also be one of the following "Pathway table", "Function table", "Ortholog table", "Gene table", "Metabolite table", "Taxon table".
To do so you'll need to install the biom package on your Linux system, information available at
http://biom-format.org/Hope this helps.