I have a menu that lists all of the terms of a (custom) taxonomy. If I click on the term name, I go to a page that is an archive of that term and lists all of the posts labeled with that term. If I click on a post's permalink, I go to the post's page (ie. single.php), and now have the Next and Prev post links.
I want to be able to click on the taxonomy term in the menu, and just have it display the first post labeled with that term, in a non-archive format. Essentially, it should use single.php instead of archive.php, or something to that effect, and then users would be able to navigate between posts with the same taxonomy via Next/Prev links.
Does that make sense?
(I'm testing this with the Twenty Ten theme, just editing functions.php to add the post types and taxonomies.)