Before you get started used CSS Menu Writer for your own menu, i recommend getting familiar with creating a dynamic menu using the "Creating Dynamic Menus with CSS Menu Writer 2.0" tutorial on the Menu Writer support page:
css-menu-writer/
in the css menu writer download center page, there is a sample database in the "CSS Menu Writer: Solution Recipe Files".
for your categories:
for the categories table you should have an ID column, category name column and category parent column.
categoryID- Primary key
categoryName - varchar
categoryParent - int.
in the category parent column you store the ID of the parent category:
|------------+--------------+----------------|
| categoryID | categoryName | categoryParent |
|------------+--------------+----------------|
| 1 | Category | 0 |
|------------+--------------+----------------|
| 2 | Subcat 1 | 1 |
|------------+--------------+----------------|
| 3 | Subcat 2 | 2 |
|------------+--------------+----------------|
when you assign the product to a category, you would store the category ID in the products table.