Taxonomy terms with image? Can I associate an image field to a taxonomy term? I need to do this in my panel that lists the children terms (with images to make it look nice) of a parent term page. I have already added image field in vocabulary thus images for each terms.

I'm on D7.
In D7 Terms are "entities", which means you can set an image field right on them, just like you could have with CCK in Drupal 6.

Just go to manage fields on whatever vocabulary you want, and you can add the image field.