gistfile1.txt

$attachments = new Attachments( 'attachments', $post->ID );
  if( $attachments->exist() ) :
		$attachment->get_single(0);
		cats = get_the_terms($post->ID, 'portfolio_categories');?>
		<li>
			<a href=""> 
        //cant do the below because it just wont work
					<?php echo $attachment->image( 'portfolio-small' ); ?>
					<div class="project-content">
					  <h3><?php the_title() ?></h3>
				    <p><? foreach ($cats as $cat):?><?=$cat->name?><? endforeach;?></p>
					</div>
			</a>
		</li>
			<?php
	endif;