Ok, this is going to take some explaining but, here goes:
The database should already be created unless you are storing your 'movie' names in an array. If you are using an array then you will have to make it before the form (so it is executed before the form is displayed). I personally would use a database like mySQL or Access, etc to store this information. Better than an array and easier to update (anytime you want to update your array by adding movies you'd have to edit the code in the actual page).
First where should the database be created, before the head or after?
Ok, if you are loading from a real database, not an array this is what you do. Top of page - make the connection to the database and load the recordset (the collection of all records in the database). Then, load your form with a loop in it, making a new option for every record in the recordset. After the form has been displayed, close the recordset.
Second should it be after the form or before?
Ok, now you have to write some sql scripts. This would be like "SELECT * From movielist Where movie_name = '" & strParamater & "' Order By movie_name DESC". Something like that. This would not be done in the same place. This would be in your handler method (if request("submit") <> null or something like that). You would check the form (using your name tags on elements) by doing something like strParamater = Request("movie_name") and then do a get from the database recordset. Wow, then you would display this information. If you do this, make sure to test for 0's cuz you might get a recordset with nothing in it (if there were no movies of that name). The only problem with that sql script I gave you is it will only look for exact matches I believe (can't quite remember my SQL).
For example if you wanted to have a list of movies and the user would then type in the movie name.
Impossible. Notepad is only displaying text, it is not scripting.
How can you make the form search the database right from the actual natepad? Or is it impossible.
To learn some JSP go here: P2P at Wrox. Or search for JSP. One problem I noticed that you have is you do not have a web host. You need one and you need to decide on your scripting language depending on the web server they are using. Ie. IIS = ASP, Apache = PHP, JSP etc etc.
Anyways, hope this helps. If you need more help just reply to this or send me a message.
PS Sorry for the length of the message.