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Magento Display Category list with images
<div class="productList mainwidth">
<ul>
<?php $_helper = Mage::helper('catalog/category') ?>
<?php $_categories = $_helper->getStoreCategories() ?>
<?php $currentCategory = Mage::registry('current_category') ?>
<?php if (count($_categories) > 0): ?>
<?php foreach($_categories as $_category):
$cat = Mage::getModel('catalog/category')->load($_category->getId());
?>
<li>
<div>
<img src="<?=$cat->getImageUrl()?>" alt="">
<a href="<?php echo $_helper->getCategoryUrl($_category) ?>"><?php echo $_category->getName() ?></a>
</div>
</li>
<?php endforeach; ?>
<?php endif; ?>
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