Variable Dependent Drop Downs

I'm a bit of a novice at excel. Maybe an advanced novice. I've got most of the basics down and maybe a few semi-advanced things but seems I'm barely scratching the surface. I've done some drop down lists and used Hlookup and Vlookup on a few things so I can muddle my way thru a bit. I'm working on a little project where I want to have different sections that I want each section to have a drop down list at the top and then, depending on what selection is made at the top, I can have drop down list below that pertain to that selection. In the attached worksheet I have a layout on sheet 1 and have added drop down lists that sort of work on a limited bases. Sheet 2 is the range. I use Hlookup just to get something going but I'm probably using the wrong formula. Maybe Vlookup? Or something else. I know nothing about VBA. I've pretty much learned anything I know by trial and much error and scouring the internet. I'll keep working with this but thought I'd throw it out there to someone smarter than me and maybe I could cut down some time.

thanks
mike