List posts by child categories- with a category icon

Hey guys,
I’m trying to list all the posts within their categories, but have the category icon off to the left. I’m using the category icon plugin (found here). i want to be able to use their code to call the image, but I just don’t know php well enough to figure it out. Can someone help?

Here’s the page I’m referring to. You can see that it’s just showing 1 icon, and it’s not the correct icon.

Here’s the code I’m using:

<?php
global $wpdb;
$categories = $wpdb->get_results("SELECT $wpdb->terms.term_id AS id, name, description from $wpdb->terms INNER JOIN $wpdb->term_taxonomy ON $wpdb->terms.term_id = $wpdb->term_taxonomy.term_id WHERE parent = '3' ORDER BY name DESC");
foreach($categories as $category) :

?>
<div id="spacer"></div>

<h2><div id="caticon">
<?php get_cat_icon(); ?>
</div>
<a href="<?php echo get_category_link($category->id);?>"><?php echo $category->name; ?></a></h2>
	<ul class="podlist">
	<li><b><?php echo $category->description; ?></b>
<br /><br />Sermons in this series:<br />
<?php global $post;
$myposts = get_posts('numberposts=999&'."category=$category->id");
foreach($myposts as $post) : setup_postdata($post);
?>

- <a href="<?php the_permalink(); ?>"><?php the_title(); ?></a><br />
<?php endforeach; ?>
	</li>
	</ul> 

<?php endforeach; ?><br />