The forms action should not be changed.
The product categories_Insert.php page is not configured to handle inserting product information in the database. It is only for adding Product Categories.
the first error:
“Warning: Cannot modify header information - headers already sent by (output started at /homepages/37/d#########/htdocs/bellwetherwool-store/Connections/localhost.php:13) in /homepages/37/d#########/htdocs/bellwetherwool-store/WA_ValidationToolkit/WAVT_Scripts_PHP.php on line 71” ;
is occurring in the localhost.php File around Line 13. most likely there are blank lines after the "?>" at line 10. remove any blank lines after the closing PHP tag "?>".
the other errors:
Warning: move_uploaded_file() [function.move-uploaded-file]: Unable to move '/tmp/phpGDzMVT' to '/roving_autumn.jpg' in /homepages/37/d#########/htdocs/bellwetherwool-store/WA_DigitalFilePro/HelperPHP.php on line 173
mean that the image upload location does not have the needed permissions.
judging by the error, the images are being uploaded to the site root at:
/homepages/37/d#########/htdocs/
you will need to make sure the htdocs/ folder has a minimum of 766
the following FAQ on 1and1: 1and1 , explains how to change folder permissions:
5.html