Taxonomy and menu links
I used the taxonomy menu module on my latest project for this purpose, works like a champ!
Here is a quote about it (from the module's project page):

Transforms your taxonomy vocabularies into menus with ease!
Features:

Custom Menu per vocabulary
Uses the default taxonomy term path or custom paths
Integrate with Views
Integrate with Pathauto: use URL/path aliases
Does not interfere with other menu modules