jquery incompatibility?

I have a jquery script that makes an image slideshow with transparent caption, and I would like to use this on my wordpress homepage. It works perfectly outside of wordpress.

Where I found it: http://www.queness.com/post/152/simple-jquery-image-slide-show-with-semi-transparent-caption

This is what I have in a file called slider.js : http://wordpress.pastebin.com/f3154e4de

My header looks like this:

<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery-1.3.2.min.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.pngFix.pack.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.flow.1.2.min.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.jcarousel.pack.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.prettyPhoto.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/slider/slider.js"></script>

and the above is loaded after <?php wp_head() ?>

The problem is when I access the page, the slider does not work – the images are all displayed in a row.

Firebug says: slider.js (line 24)

$("#slider .content").html($("#slider a:first").find("img").attr("alt")) is null
[Break on this error] $('#slider .content').html($('#slider a:first').find('img').attr('alt'))\r\n

Any thoughts on what I need to do to get this to work would be greatly appreciated, but please keep in mind I know nothing about javascript, so use small words. 🙂