Cut it out, shred it, burn it, and stomp on the ashes!!!
Wait... I just took another look at the thumbnail scroller plugin site. The post was from 2010 (thus the old version), and IT was were http://ajax.googleapis.com/ajax/libs/jquery/1.5/jquery.min.js came from.
This means that including the older jquery 1.5 should actually work (meaning remove jquery 1.7.2). This would make sense considering the error was in the newer jquery.
So, I wrote another novel, but I think I want to make it a bit clearer what your options are. Try one, and then try the other.
Only comment out the code so you can try some different combos if there is still trouble.
If you want it to just work (hopefully) comment these script tags out:
These are the files the ones <a href="http://manos.malihu.gr/jquery-thumbnail-scroller/">thumbnail scroller is supposed to work with</a>.
If you want to try using the newest versions, comment these script tags out:
Jquery is darn good about backwards compatibility, but there is no guarantee.
It looks like you tried pulling out jquery 1.5 (unless my browser is acting hinky) and it still doesn't work.
I would recommend trying one of the options above. With the first one..first. Make sure to comment out both.
Let me know how things are going...