This module has been abandoned in favor of Taxonomy Menu which does the same thing with more features.
It adds taxonomy terms to the menu system. This module depends on Pathauto if you are willing to build a proper hierarchy menu structure out of your taxonomy terms (if the taxonomy has hierarchy of course).
This module only works with Disabled and Single hierarchy vocabularies.
With this module, you can configure it in a way to show each term as a menu entry and display it any menu parent of your choice, meaning that you can create a menu and have it being the parent of your taxonomy menues, and then, have them displayed on a separate block rather than on navigation.
It depends on Pathauto in the way aliases are generated.
Note for Views users: taxonomy/term override
If you are using Views and have overridden the taxonomy/term, this module will detect that and use that view instead of the usual taxonomy page renderer.