After trying different approaches I was able to do exactly what I needed. Below is the step by step process in order to have two linked list on one page.
This is for SharePoint 2010 Standard
-In web browser, click on Site Actions -> More Options -> Page -> Page (Wiki). I do this in order to create page that based on master page with header and side panel.
-Now you want to Edit page in SP Designer. Now go to Source screen and copy everything. You can paste it in notepad or anything else.
-Using SP Designer create new ASPX page, name it appropriately.
-When you will first open the page it will give you a warning that it does not have any safe region for edit and it will ask to edit in Advance Mode. In Source, remove everything and paste code out of notepad that we had saved. This way we tricked SP into believing that it is not based on template and it will not try to change it.
Now we are ready for the linked list.
-First step is to create detail list that will include all the different information describing the item in the other list.
-Second step is to create summary list, I created some extra columns in order to group items. Once you have it the way you need it, create lookup column. Find the detail list and the column you need. In the check boxes below make sure to select first one for adding additional field. This will give us a column without hyperlink to the item. Rename additional column with desired name.
Now we are ready for final step.
-In SP Designer we want to open the page, you can modify the layout and do what ever you want here, I just created simple table with 2 rows and 3 cells where cell in first row spanned 2 columns.
-Click on left cell in second row. On toolbar go to Insert Tab ->Display Item Form -> select your summary list.
-Click on right cell in second row and repeat same process for list that host details.
-Modify the view of each list to reflect you needs.
-At this time we should have two list that display some or all items. In my case summary displays everything and details display 1 item at the time.
-Click on summary list, in toolbar -> Data View Tools -> Options -> Add Connections
-In drop down select "Send Row of Data to" hit next
-Select "Connect to a Web Part on this page" hit next
-On this screen select list that contains details, under Target action: select "Get Filter Values From" hit next
-Now you have to locate column that links two list together, select appropriate column on both side, hit next
-Under Create a Hyperlink on: you want to select the additional column we created that does not include built in link. hit next and finish.
For me by default the Asynchronous Update was selected, make sure it is checked in toolbar. Save the page and display in browser. You should be able to click on hyperlink in summary list and detail list to switch to that item.
This can be achieved with single list. Instead of creating two list and then linking them, just create one list with two different views. One view would display all items as reference above and second view would list only one item at the time. The rest of the steps in creating connections are the same if it was to separate lists or same list displayed two different ways. When using one list it gives you more control over who has access to create/edit or approve items. Also it removed the need to create items in another list and linking them together.