I know there are plugins out there that allows you to style a select field in a form using jquery. However they are over done for what I need. I just need the ability to bold certain options as well as indent options. Other than that, just want the select field to look like a normal select field. I can use css to style but doesn’t work in browsers like IE. I basically want it to look like the image below, is it possible via jquery? I tried optgroup but you cannot select a optgroup option:

You’re question doesn’t really make sense. You say that you don’t want to use a jquery plugin for a custom select, but you are asking if its possible to style a select with jquery.
You’re right about IE. The best you can get with CSS is by styling optgroups, but like you say, you can’t select those. This article has a pretty good explanation of what you can and cannot do.
Check out selectbox. I’ve used it before and I found it to be pretty painless to apply my own styles. Another benefit is that the dropdown will look the same in all browsers, whereas the native select element will differ.