That's the correct help entry for what you are trying to do.
"I didn't see anywhere in the directions where to input the options for "vine" "ground cover" and so on."
Your values have to be entered into a field in a table somewhere in your database for this to work.
I'd probably set up a separate table with the two fields, Classification and Classification Category. I'd enter the values there and set up a relationship for my value list matching a classification field in my main table to the Classification table in this table. You have an added complication that some values are members of more than one Classification (Vine shows in both your examples.) You could either have two "vine" records in your table or set up a multi-value key that can match a given record to multiple classifications. I wouldn't worry about this until I could get the basic value list working.
If you've done all that and it still doesn't work, look at the details of your Value List definition. You have to specify the values as coming from one table and then specify a different, related table in the "Include only related values starting from" section of the dialog box. In the above example, I'd specify the new table as the source of the values and then specify my current table in the "starting from" section.
This is known as a Conditional value list. Here are some great demos (by Comment) on the subject:
http://fmforums.com/forum/showpost.php?post/195641/ this is my favorite one
Thank you both so much this information helped me a lot. I was even able to do a nested instance of this, another field based off the 2nd fields inputed value.
The examples were very helpful.