Just posted on web2pyslices.
http://www.web2pyslices.com/slice/show/1526/cascading-drop-down-lists-with-ajax-2
 
<http://www.web2pyslices.com/slice/show/1526/cascading-drop-down-lists-with-ajax-2>

This is one of the solution for you If you're struggling with drop down 
lists using two tables which second drop down list is dynamically created 
depending on the selected value of the first drop down list. 

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