[eluser]Aea[/eluser]
Yea it's pretty much an AJAX question, how you go about it is really up to you. I personally use prototype, you have an listener for a change in a drop down (which would have it's own unique ID to reference), then the JS sends a request to the server which will respond with the values you want to fill in, personally I would use JSON, but you can send pure HTML to inject if that's your preference. You could have a controller named Ajax and just send the type of requests you want to do, ie ajax/form_get_item/ and send any variables you need as a POST.
The other way to do it would be to pull any possible result directly into the page (or in an external .js) and skip the database call since the client would have any information to add, of course this only works if your database is small, and if it isn't updated often so you can create the script files storing the data, personally this is... ugly, but it doesn't require AJAX