Trying to hack a pixelating slideshow script to work with WordPress

Ok, I’ve tried looking for a plugin that will do this job but with no luck so i’m now trying to hack the script I have used before on non WP sites to do what i need…

The script is this one: http://www.dynamicdrive.com/dynamicindex14/pixelate.htm

So I have written a function as follows:

function sponsor_slide() { ?>
    <script language="JavaScript1.1">
		<!--
		//Pixelating Image slideshow
		//Copyright Dynamic Drive 2001
		//Visit http://www.dynamicdrive.com for this script
		//specify interval between slide (in mili seconds)
		var slidespeed=3000
		//specify images
		var slideimages=new Array(<?php
		$sponsorslide_query = new WP_Query("category_name=sponsors&posts_per_page=20");
		if ($sponsorslide_query->have_posts()) : while ($sponsorslide_query->have_posts()) : $sponsorslide_query->the_post();?>"<?php
			echo wp_get_attachment_thumb_url( get_post_thumbnail_id( $post->ID ) );?>",<?php
   		endwhile;
		endif;
		wp_reset_query();
		?>)
		//specify corresponding links
		var slidelinks=new Array(<?php
		$sponsorslide2_query = new WP_Query("category_name=sponsors&posts_per_page=20");
		if ($sponsorslide2_query->have_posts()) : while ($sponsorslide2_query->have_posts()) : $sponsorslide2_query->the_post();?>"<?php
			the_permalink();?>",<?php
     	endwhile;
	 	endif;
		wp_reset_query();
		?>)
		var imageholder=new Array()
		var ie55=window.createPopup
		for (i=0;i<slideimages.length;i++){
		imageholder[i]=new Image()
		imageholder[i].src=slideimages[i]
		}
		function gotoshow(){
			window.location=slidelinks[whichlink]
		}
		//-->
	</script>
<?php }
add_action ('wp_head', 'sponsor_slide');

Which as you can see is the HEAD code from DD with some WP_query codes in the places where the images and link references need to be.

It doesn’t obviously error… but it doen’t work either. It is including the javascript but just ignoring all my WP Queries.

Can anyone offer any pointers as to where i need to go with this?