I came across this interesting website, with an idea of a way to visualize a clustering algorithm called "Clustergram":
alt text http://www.schonlau.net/images/clustergramexample.gif
I am not sure how useful this really is, but in order to play with it I would like to reproduce it with R, but am not sure how to go about doing it.
How would you create a line for each item so it would stay consistent throughout the different number of clusters?
Here is an example code/data to play with for potential answer:
hc <- hclust(dist(USArrests), "ave")
plot(hc)
Update: I posted a solution with a lengthy example and discussion here. (it is based on the code I gave bellow). Also, Hadley was very kind and offered a ggplot2 implementation of the code.
Here is a basic solution (for a better one, look at the "update" above):