Change image on time interval and when hover over link using wordpress

I wanted to ask how to make images change on time interval (lets say after 5 seconds) and these same image change depending on the linked hovered (similar as it is in a site like www.gamespot.com).
I have these links:

<ul class="ul1">
<li class="li1"><a class="link1" title="CRM" href="http://link1" target="_self">CRM</   a><li>                                                                     
<li class="li1"><a class="link1" title="Apskaita ir finansai" href="http://link2" target="_self">Apskaita ir finansai</a></li>
<li class="li1"><a class="link1" title="Darbo užmokestis" href="http://link3" target="_self">Darbo užmokestis</a></li>
<li class="li1"><a class="link1" title="Kasos terminalas" href="http://link4" target="_self">Kasos terminalas</a></li>
</ul>

Ok, so I’ve managed to create this so far:
So jquery would look like this:

function swapImages(){
var $active = $('#gallery1 .active');
var $next = ($('#gallery1 .active').next().length > 0) ? $('#gallery1 .active').next() : $('#gallery1 img:first');
$active.fadeOut(function(){
$active.removeClass('active');
$next.fadeIn().addClass('active');
});
}
$(document).ready(function(){
  // Run our swapImages() function every 5secs
  setInterval('swapImages()', 5000);
}

I added my .js file into ‘wp-includes/js/jquery’. I opened header.php and inside ‘head’ tag added:

<?php wp_enqueue_script("jquery"); ?>

<?php wp_head(); ?>
<script type="text/javascript" src="/wp-includes/js/jquery/image-on-time.js"></script> /*my .js function*/

CSS styles:

#gallery1{
float:right;
width:400px; 
height:300px; 
}
#gallery1 img{
    display:none;
    position:absolute;

}
#gallery1 img.active{
    display:block;
}

html syntax on my page:

<div id="gallery1">
 <article>
<img src="img1.jpg" class="active"/>
<img src="img2.jpg"/>
<img src="img3.jpg"/>
 </article>

So after doing that, first image appears and nothing else happens. Did I do something wrong loading .js file or something else is wrong?

So i read, that jquery may conflict with other script by using ‘$’. So I changed function like this:

var $j = jQuery.noConflict();
$j(function swapImages(){
var $j(active) = $j('#gallery1 .active');
var $j(next) = ($j('#gallery1 .active').next().length > 0) ? $('#gallery1 .active').next  () : $j('#gallery1 img:first');
$j(active).fadeOut(function(){
$j(active).removeClass('active');
$j(next).fadeIn().addClass('active');
  });
}
  $j(document).ready(function(){
  // Run our swapImages() function every 5secs
  setInterval('swapImages()', 5000);
   });

And I even changed the way how .js is called:

 <script type="text/javascript" src="<?php bloginfo('template_url'); ?>/wp-includes/js/jquery/image-on-time.js"></script>

But nothing changed.. Can anyone tell me what I’m doing wrong?..
So there is no one that knows a little about wordpress?