Show all terms of a vocaboulary
I'm not sure what exactly you are looking for. The taxonomy terms for a node are normally nested inside $node-&gt;taxonomy. If you want all the terms "above" the terms inside the node, you should take a look at taxonomy_get_tree(). 
To the code above: I would urge you to seperate the tree-logic from the output; first create the array, then render the output.