Hi Jimmy, welcome to the Forums.
Yes, I'd say you are on the right track. Your site is looking good. Nice clean, bright design, and nice and easy to read. It describes the products well too.
A couple of points. First of all, the DHTML menu on the left looks messy when it loads, with all that overlapping text! It also crashed my Netscape 4.7 rather spectacularly a couple of times.

It should be possible to hide all that text, and only document.write it once the page has loaded.
On your front page, the rocking horse animation is cute, but at 119K it makes the page far too slow to load (over 30 seconds on a 56K modem). People will give up before it finishes and go to another site. Also, your "Timber Trade Federation" logo is HUGE (both in terms of bytes and in terms of dimensions!). Resizing it using the IMG WIDTH and HEIGHT tags is a bad idea, because the browser still has to load the whole image (all 42K of it!) before it can display the small version of it. Resize it in a paint package (e.g. Photoshop or Paint Shop Pro) and re-export it as a GIF (2-colour images compress much better as GIF's). You should be able to get it down to 2K or less.
Having 2 navigation menus is a little confusing, as you're never quite sure where to look for a particular section. Consider combining all navigation links into one menu. Having said that, the navigation is nice and clear, and easily distinguishable thanks to the yellow backgrounds.
I liked the search box on your site - that's a good idea - but when you get the search results the page titles are all "The Latvian Plywood Company", which isn't very meaningful. I suggest individually naming each of your site pages so that it's easier to find what you're looking for in the search results.
Overall, a nice-looking site with lots of good product info. Good use of colour, fonts and space to create a welcoming, fun-looking site.
Hope that helps!
Best wishes,
Matt
Elated

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Matt Doyle, Elated
3rd Edition of my jQuery Mobile book out now! Learn to build mobile web apps. Free sample chapter: http://store.elated.com/