Not Dropping To UL When Add Is Pressed?

The idea I want here is when the user click on a character name from the drop down select bar at the bottom of the the form under case 1 and hits Add it is supposed to add it as a new LI in the UL that's under the drop down. Also what I woudl like to do is when the user as chosen all of the characters they want to I would like to insert the data into the insert tag inside my function at the bottom of this code strip and take the first character selected and put it into the insert with the column of default_char_id and default_news_id.

Right now when you click the right submit button next to the drop down all it does is go back to the default page I have set up.

PHP Code:

<?php 
$e = <<<here
<script src="./jscripts/scriptaculous/prototype.js" type="text/javascript"></script>
<script src="./jscripts/scriptaculous/scriptaculous.js" type="text/javascript">

[Code].....