NOTE: In D6 and above this is more easily done with Views.
Term blocks creates a configurable number of blocks that list taxonomy terms from the specified vocabulary. Terms can be listed as Newest (nodes have recently been added to this term), Popular, Random, or Tag Cloud (via Tagadelic).
Some use cases:
You want to display on your sidebar of recently added to categories.
You need several tag clouds using the same vocabulary.
Provides functions and a page to search for points or paths defined in cck_maps, ranked by proximity to a given point.
If the Location module is installed then the search page allows entering a postcode, otherwise the location to search near must be given as a lat/long pair.
This module creates blocks for taxonomy vocabularies.
Merging with Taxonomy Navigator:
In a move that might decrease confusion, Taxonomy Blocks module will merge with Taxonomy Navigator.
If you are a maintainer of one of the many "taxonomy blocks" modules, please join us.
The merged module will start in 2.x branch. Bugs in 1.x will be fixed anyways.