I believe I found the solution here:
http://codex.wordpress.org/Function_Reference/wp_set_object_terms
wp_set_object_terms( $post_id, $terms, $taxonomy, $append );
wp_set_object_terms( 4, $cat_id, 'example_product_cat');
This is still placed inside of the install.php file.
If there is a better solution, please add!
Thanks.
Roc.
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