Hi there. Thanks for the great question.What you have sounds like it will work, except for the part about protecting the same Category ID under two different Levels. If you protect a Category at Level #2, Level #1 Members will NOT have access to it. Filling it in twice, is the same as filling it in once at the higher Level; because Membership Level Access works incrementally. In other words, entering Category ID: 123 into the Level #2 field, is telling s2Member that Category ID: 123 requires Level #2 access; even if you've already entered it into the Level #1 field.
Here is another alternative.1. Use just one Level. ( Level #1 ).
2. Create two PayPal Buttons for Level #1 access,
but at different prices, and with different payment terms.
That will work just fine