i think you are getting downvotes b/c your question is crazy vague. if i understood from your themeshaper post then you are trying to group all your terms alphabetically like so:
A
- anvil
- apple
- art
B
- bacon
- banana
D
- darth vader
- daytime
and so on. if this is the case, you can achieve it with get_terms() and a foreach loop
$terms = get_terms( 'category', array('orderby'=>'slug','order'=>'DSC'));
$xletter = NULL;
foreach($terms as $term){
$letter = substr($term->slug, 0, 1); //gets first letter of slug
if($letter != $xletter){ //if the letter has changed then print it out
echo '<h2>' .$letter . '</h2>';
}
$xletter = substr($term->slug, 0, 1); //gets first letter of slug
echo $term->name . ''; //echo the term name
}