I had the same issue with a Woo theme using jQuery 1.8.3 and loopedSlider 0.5.4. I fixed it by editing line 164 of loopedSlider.js.
From: jQuery(pagination+'[rel="' + (t) + '"]',obj).parent().addClass('active');
To: jQuery('[rel="' + (t) + '"]',obj).parent().addClass('active');
Hope this helps.
