Wordpress Posts Page Development

Based on the twentyten theme, the current page requiring modification is: http://www.confidenthorserider.co.uk/category-index/ plus maybe other WP files. This page is generated from php script in a file called categories_directory.php

1. Create a Category list that looks page like http://www.horseandcountry.tv/advice
I've started this page here http://www.confidenthorserider.co.uk/category-index/
based on a template file called /wp-content/themes/twentyten/categories_directory.php

What needs to happen:
a/ pull an image from the first post in the category.
b/ When the image or the category title is clicked, it will link to another page which will only contain a list of posts within that category, (which it already does) plus links back to the main category page


2. Create a Post List Page:
The post list will contain the title, and first line, + read more….
As per this: http://www.confidenthorserider.co.uk/category/confidence-coaching-tips/

When a post is clicked, it will link to the full article
At the top and bottom of the full article, remove Wordpress functionality that lets people read the next or previous post. Those links to be replaced with links that return people to the entire category list (item d. above) – not the next or previous post.

Hope this is clearer than mud?!?
Thanks