I finally found exactly what i was looking for at Multiple level category drop-down
One problem - the example codes not working - and i realize its a year old so any ideas? I am currently playing with it at http://bmfx.net/carv1/ Shows the two drop down boxes, select the parent category and woops drop box number 2 gets replaced with a 0.
Any ideas on what could be causing this problem?
UPDATE: ANY IDEA ON MAKING IT Tri-Leveled...?