Hey jds580s,
To do what you're describing now changes the previous stuff (actually a bit simpler).
Just replace the previous code in products.php with
Code:
#
# Create manufacturers array
#
$query = func_query("SELECT manufacturerid, manufacturer FROM $sql_tbl[manufacturers]");
$smarty->assign("manufacturers", $manufacturers);
Then in your template you'll do something like this
Code:
{section name=id loop=$manufacturers}
{$manufacturers[id].manufacturer}
{section name=product loop=$products}
{if $products[product].manufacturerid eq $manufacturers[id].manufacturerid}
{$products[product].product}
{/if}
{/section}
{/section}
Hope this helps....