Bueno ya lo solucione, de todas maneras les dejo mi codigo:
<?
$mysql_mio= mysql_connect($host, $user, $pass)
or die ("Cannot make the connection");
mysql_select_db($midb, $mysql_mio
or die ("Cannot connect to the database");
$rime= mysql_query("SELECT * FROM paises where sub_cat = 'co' ");
while($row = mysql_fetch_array($rime)) {
extract($row);
$name = $row["lcat_name"];
$navigator = "" ;
$rime3= mysql_query("SELECT * FROM paises WHERE sub_cat = '$paid' and pais = '2' ");
echo "";
while($row = mysql_fetch_array($rime3)) {
extract($row);
$id2 = $row["paid"];
$paquetes = $row["lcat_name"];
$sub_cat = $row["sub_cat"];
$linnk = "<td align=right><img src=../grafisole/pinpaquetes.gif border=0></td><td align=left><font face='Verdana' size=1 color='#999999'>
<b> <a href=paquete.php?cat=$id2 class=paises>$paquetes</a> </td></tr>";
$navigator = $linnk ." ".$navigator;
}
if ($sub_cat > 0) {
echo " <tr><td colspan=2 height=10></td></tr>
<tr><td colspan=2 height=7><font face='Verdana' color='#FF9900' size=2><b>$name</b></font></td></tr> ";
echo "<tr> $navigator ";
echo " ";
}
else {
echo " ";
}
}
?>