I am the author of the jQuery Colorbox plugin (http://wordpress.org/extend/plugins/jquery-colorbox/). A user of my plugin pointed out that jQuery Colorbox would not work if your plugin is activated.
I found that you are including the jquery-tools _with_ jQuery 1.3.2. This overwrites previously included jQuery versions (and additions like jquery-colorbox) and renders them useless.
Could you please include the tools without the jQuery library? I just tested your plugin with only the tools, seems to work fine.