A product is a specific edition of an operating system or application, for example, Microsoft Windows Server 2003. A product family is the base operating system or application from which the individual products derive. An example of a product family is Microsoft Windows and Microsoft Windows Server 2003 is a member of this product family. You can select the products or product families for which you want your server to synchronize updates. You can specify a product family or individual products within the family. Selecting a product or product family means that updates will be retrieved for current and future versions of the product.
The Category folder is found under Patch Management child points and under All updates. The folder contains a number of subfolders, one for each registered category. When you click on a folder, specific updates for this folder are shown in the content pane. The basic idea is to show updates in an easy and structured way.
The categories shown in the tree view reflect the categories selected on the WSUS server 3.0 in the WSUS management console. They are synchronized once a day.