How do I create a nested tree with terms & nodes with Views 3? I need to create something similar like this:

Colors (Vocabulary)


Red (term)

Dark (term)

Node 1
Node 2

Light (term)

Node 3
Node 4


Blue (term)

Node 5
Node 6

Green (term)

Node 7
Node 8



(Bullet points are indents.)
Is there a way to do this with Drupal 7 and views 3? If not, is there another way to do this?
Thanks to refino, I found a nice solution using the following modules: Views Tree
Views Field View

Below you find the explanation:


First create a new Taxonomy (let's call it "Folder")
Then, create a new content type (let's call it "Element") with a term reference field to the "Folder" taxonomy
Create a new "Content" View (let's call it "Element View")
Choose Field Display
Add a Contextual Filter to your term reference field
Create a new "Taxonomy" View (let's call it "Folder Tree")
Add 2 fields (term name and term id). The second field can be excluded from display
In Relation: add a "parent term"
Add a third field (term id) and assign it to your parent relation. This field can be excluded from display
Choose Format "Tree (Adjacency model)" and select in the parameters : Ordered list + Main field (your first tid), Parent field (your tid assigned to the parent relation). You now should have a nice tree with all your terms nested
Add a 4th field "Global:View" (this comes with Views Field View) and choose your "Element view", display Master add [tid] in the Arguments textfield


Hope this help

Cheers

Edit by iStryker:   This is what I got.  The only thing I changed was make Element View a table view, and removed the default (row &amp; strip) classes.