Using Panels to display Taxonomy terms
Drupal Panels can do this using the Views module. The two modules work very well together to arrange your content on a page, but Views is the workhorse for sorting through the content and selecting what you want.  Check out the video series "Taming the Beast" at Nodeone.se for how to use Views.  They also have a series on Panels/Page Manger that shows how to link them.