Julie,
I'll take a stab at it.
Lookup tables are just collections of information that
pertains to a particular subject. They may be job categories,
payment types, or just about anything. One purpose that they
serve is to keep your data consistent; if you have users type
in values, you'll get: electrishun, electrician, electric guy.
The second thing that they do is save effort, you just select
the field, not type it.
Relationships define how your tables work together. They tell
Access what information in Table a "belong" with what information
in Table B. If my main table has an entry for NY social security
number (SSN), then other tables can use their SSN field to
show that those are MY jobs, relatives, etc. If you define
relationships, then make a new query with multiple tables,
Access will do all of your "joins" for you. It knows which
elements in the different tables belong together.
The relationships, can also define whether you have "cascading"
deletes and updates. If I change my SSN in the main table,
all of "MY" SSNs in the related tables change with it. There
are no "orphans".
Wayne