The screen shots were a bit confusing, but if I read this correctly, you want what you see in the first pic, right? Views 3?
If it were me, I'd have two displays, like what you have. A Page and an Attachment built using Taxonomy (not a requirement, but if you use Content, this can get a bit convoluted with Relationships). The Attachment would be the 'Menu' and the page would be the display of all of the nodes with that taxonomy term.
The list of nodes/Page Path would be /taxonomy/% (So, for instance in the picture, you have 'red'. The path would be example.com/taxonomy/red) Contextual Filters would be Term ID. I don't know where you're going with the depth part of it, but I don't think it requires it, from the description/picture. In Relationships, I would add Taxonomy Term: Content with term. If that works, great! I don't think you can use relationships, though, with Teasers, so you'll have to build these with Fields (using the relationship built above).
The menu/Attachment I would use Fields (Under Show: Content (change this to fields)). The field would be Taxonomy term. I'd turn off the auto-link-to-term-page, turn on the custom link, link to /taxonomy/[term] (or whatever Views lists on replacement patterns). Format would be Unformatted list. Then you can style the View to be menu style using CSS. If that doesn't work, you could create a View of the Taxonomy Vocabulary, then show all Terms, in the Field Settings, you can make them Inline with a separator. That would limit it to only one Vocabulary, though.
Hope that helps. I may have missed a step or two, but you should get the idea from what I have there.
Joel
From: support-bounces@drupal.org [mailto:support-bounces@drupal.org] On Behalf Of richard reyes Sent: Wednesday, May 30, 2012 10:16 AM To: support@drupal.org Subject: [support] Displaying taxonomy as menus
Hi Guys,
I have been trying to work on this as a project, please see attached [taxonomy menu.png]. Its part of the drupal 7 views cookbook but the instructions on the book are outdated. I am having trouble displaying the taxonomy terms as menu's like the ones on the screenshot.
The other attachments are what I have accomplish so far, as you can see I was able to display the articles and the taxonomy terms as part of the attachments but got stuck on making the terms unique and styled as a menu or something like it.
Any help is appreciated.
Thanks.
Richard