Gotboots,
Your code looks great, but there are quite a few errors...
Your function 'margin()' is missing a closing curly brace '}'.
'onupdate' isn't an input element event, AFAIK. Try 'onchange' instead.
The input element values are of type string, so your conditional test will not work as expected. Try converting the strings to integer values with the parseInt() function, e.g. var LIST = parseInt(document.getElementById("list").value);
Note that javascript statements end with a semicolon. You're missing about three.
The doctype declaration in your HTML isn't quite right too. Which development environment are you using? Find one that supports syntax checking, HTML validation, and code completion. This'll help you to reduce errors and should make learning HTML or JavaScript a little easier.