Recently, I just finished coding out a website for a client in Magento. You can view the site at www.3graces.com, it was a full switch from some old legacy asp shopping cart to Magento. Im really happy with the way things turned out and the client is too, Magento just has so many wonderful features built-in.
One feature that I found wasn’t built in was a way to display each sub-category with an image, and its name on a landing page. Magento has a nice feature which allows you to assign an image to a category, but doesnt give you a way to make that show up in a listing somewhere.