If you would like to create a page view that takes a term id as an argument (like my technology, portfolio pages), You can use the following code in the header of the Views 2 Taxonomy Term view.

<?php
 
  $view = views_get_current_view();
  // [0] is first arg, [1] is second etc.
  $term_arg = $view-> args[0];
  //get the taxonomy object
  $t = taxonomy_get_term($term_arg);
  //get the taxonomy term image  
  $timg = taxonomy_image_display($term_arg, null, "taxonomy-category");
  echo("<div class='taxo-image-outer'><div class='taxo-image-inner'>".  
             $timg . 
          "</div><p>". $t->description.
                                   "</p></div><div class='clear-block'>&nbsp;</div>");

?>

I realize the formatting of this code is not ideal, but you get the idea.  The logic flows like:

1. Get the $view object
2. Create a static int var of the first term argument
3. Get the full taxonomy term object
4. Get the taxonomy_image object and imagecache preset from the taxonomy_image_display() call
5. Finally I just call an echo command and style it a little bit.