If you have the add new record part working you're 90% there.
Just add a value to the query string on your link to edit. Something like:
<a href=edit.php?itemID=1>edit</a>
Then run a SELECT * from database where itemID = $_GET['itemID']
Set up your results in an array using mysql_fetch_array() so you end up with something like $row['itemID'], $row['itemName'] etc.
then just echo the variables as the values you want in the form fields.
For drop down menus you'll need to loop through the options to see if the value is equal to your $row['something'] variable and if so add a SELECTED attribute to the dropdown option.
Then, instead of using your INSERT query, grab all the data posted from the form and run an UPDATE query.
hth