(function ($) {
	$.fn.listcycle = function (limit, interval) {
		limit = limit || 4;
		interval = interval || 4000;
		
		return this.each(function () {
			// 1. setup
			// capture a cache of all the list items
			// chomp the list down to limit li elements
			var $list = $(this),
			items = [], // uninitialised
			currentItem = limit,
			total = 0, // initialise later on
			height = $list.find('> li:first').height();
						
			// capture the cache
			$list.find('> li').each(function () {
				items.push('<li>' + $(this).html() + '</li>');
			});
				
			total = items.length;
			
			$list.wrap('<div class=".listcycleWrapper" />').parent().css({ height : height * limit });
				
			$list.find('> li').filter(':gt(' + (limit - 1) + ')').remove();

			// 2. effect
			function spy()
			{
				// insert a new item with opacity and height of zero
				var $insert = $(items[currentItem]).css({
					height : 0,
					opacity : 0,
					display : 'none'
				}).prependTo($list);
												
				// fade the LAST item out
				$list.find('> li:last').animate({ opacity : 0}, 1000, function () {
					// increase the height of the NEW first item
					$insert.animate({ height : height }, 1000).animate({ opacity : 1 }, 1000);
							
					// AND at the same time - decrease the height of the LAST item
					// $(this).animate({ height : 0 }, 1000, function () {
					// finally fade the first item in (and we can remove the last)
					$(this).remove();
					// });
				});
						
				currentItem++;
				if (currentItem >= total)
				{
					currentItem = 0;
				}

				setTimeout(spy, interval);
			}
				
			spy();
		});
	};	
})(jQuery);