Image 1: New/Edit Item Form

From New/Edit Item form user can select one of predefined lookup values.

Image 2: New/Edit Item Form

From New/Edit Item form user can select one of predefined lookup values.
Also with "Add new item" functionality user can add additional items on fly.

Image 3: View Item Form

View Item form shows selected lookup.

Image 4: List View

List View form shows list of the selected lookup values.

Image 5: Column Settings

These settings change displaying mode for list view and view item form.

Image 6: Column Picker Settings

These settings determine values in picker dialog.

Image 7: Picker Dialog

User can easily select lookup value using Picker Dialog.