What is the trick to implement the following interface in ASP.NET?

I think the screenshot should explain everything.
How to store previously selected categories/items and the dropDown filtering by category, while adding, changing, deleting items or some other PostBack on website?
What I have tried so far is to use Repeater with DataSet, however I have encountered several different problems:
I can post some code but since it doesn't fully work, perhaps a totally different approach would be better. Basically I started with this tutorial. The repeater currently looks like:
<repeater>
<itemtemplate>
<dropDown DataSource="categoriesDS"
value='<%# DataBinder.Eval(Container.DataItem, "Category") %>'.../>
<dropDown DataSource="itemsDS"
value='<%# DataBinder.Eval(Container.DataItem, "Item") %>'.../>
<button CommandName='<%# DataBinder.Eval(Container.DataItem, "Button") %>'
Text='<%# DataBinder.Eval(Container.DataItem, "Button") %>' .../>
</itemtemplate>
</repeater>
Thanks in advance for any suggestions or solutions and I hope it'll be helpful for others.
Ajax Cascading DropDownlist
It is very simple to use.
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