Fun times...

gistfile1.scm

(define (product los1 los2)
  (define (product-elem los e)
    (if (eq? los `())
        `()
        (cons (list (car los) e)
              (product-elem (cdr los) e))))
  (if (eq? los1 `())
      `()
      (append (product-elem los2 (car los1))
            (product (cdr los1) los2))))

> (product `(1 2 3) `(x y))
((x 1) (y 1) (x 2) (y 2) (x 3) (y 3))