Tips : Using the taxonomy term associated with a node as an argument in a view

How to in Views 2: Using a taxonomy term associated with a node as the argument in your block view. In the original Views module, the PHP Argument handling code was a collapsed fieldset that opened to reveal a textarea in which to input code. In Views 2 this is still necessary, unless we're missing out on some uber-advanced method, but harder to get to.

We are certain it must exist though:
"Block displays have no source of arguments at all; they cannot pull arguments from the URL, and often require use of the PHP code default in order to get arguments."
- from http://views-help.doc.logrus.com/help/views/argument

OK, so if you go to "Action to take if argument is not present: "

and select "Provide default argument"

A div appears below:
"Provide default argument options"
select "PHP Code"
and there, below, will AJAX-ily appear our box for entering code.
and we're back in business, because we have a code box, where we can make it work.

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Courtesy : Agaricdesign.com