List custom post type by Custom Taxonomy

Hi,

I have created a custom post type ‘merchants’ and a custom taxonomy ‘industry’ for use with the custom post type.

I now need to list all the taxonomy terms, and show the post title, as well as excerpts + first image in the post.

THis is what I have so far,

<div class="itembox">
<h1>Merchants Directory</h1>
<div class="itemboxinner">
<div id="content-main">

<?php

// List posts by the terms for a custom taxonomy of any post type

$post_type = 'merchants';
$tax = 'industry';
$tax_terms = get_terms( $tax );
if ($tax_terms) {
	foreach ($tax_terms  as $tax_term) {
	$args = array(
		'post_type' => $post_type,
		"$tax" => $tax_term->slug,
		'post_status' => 'publish',
		'posts_per_page' => -1,
		'caller_get_posts'=> 1
	);

		$my_query = null;
		$my_query = new WP_Query($args);

		if( $my_query->have_posts() ) : ?>

			<h2 class="breadcrumb"><span style='font-size: 20px;color: #006400'> All <?php echo $tax; ?> Posts For <?php echo $tax_term->name; ?></h2></span>
						<ul class="taxlist">
			<?php while ( $my_query->have_posts() ) : $my_query->the_post(); ?>

				<li id="post-<?php the_ID(); ?>">
					<a href="<?php the_permalink(); ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a>
				</li>

			<?php endwhile; // end of loop ?>

			</ul>

		<?php else : ?>
		<?php endif; // if have_posts()
		wp_reset_query();

	} // end foreach #tax_terms
}
?>
</div>

and the output is:
<img src=”http://i48.photobucket.com/albums/f233/yemitubosun/ouuput.png&#8221; border=”0″ alt=”Photobucket”>

I am struggling with the code.

Please help correct the code to
1.list the taxonomy terms,
2.the posts under each term,
3.Excerpts of each post.
4.First image in the post.

Thank you