Ok, now we have the basic requirements and we could make at list raw project

Of cause we could do everything without AJAX but I will strongly recommend to study xAJAX it is really easy to use and once you will try it you will never do any project without it
So the first thing is that we will need a form with two select fields and probably two submit button on the right side of them with caption 'load'. They should have different names so we could identify which of them was pressed (of cause we could do with just one button or even "onchange" even of list box but in that case you will need to use JS and that is not a good idea since users used to disable JS). Lets say we have two buttons with names: do_load_category and do_load_product. All data will be sent to index.php file.
Now in index.php file we have to check which button was pressed (could be that none of them

). Here you will need your isset() function to check the existence of your button. The only one button name will be sent to the index.php, the one which was pressed. So you will have:
PHP Code:
if (isset($_REQUEST['do_load_category'])) {
// here you have to check that category was selected, some stupid user could miss it :)
} else if (isset($_REQUEST['do_load_product'])) {
// the same here but now you have to check that both category and product is selected
} else if (isset($_REQUEST['update'])) {
// that is the button at the bottom of the page which user will press when he wants to
// update the data. Here you have to check that category and product fields are selected
// and if everything is ok then update your data in DB
} else {
// print default page, user have not pressed any button yet :)
}
The good idea is to disable product select field until the do_load_category button will not be pressed. The same for update button at the end of the page. You will enable it only when both category and product has the valid values.
I personally prefer to use HTML templates. I never mix PHP and HTML. Instead I like to use %%PRODUCTS%%, %%CATEGORIES%%, %%UPDATE_DISABLED%% marcros. That will allow you later to update your design without touching you PHP script
Good luck