jQuery(function () {
    jQuery('ul.spy').simpleSpy();
});

(function (jQuery) {
    
jQuery.fn.simpleSpy = function (limit, interval) {
    limit = limit || 3;
    interval = interval || 10000;
    
    return this.each(function () {
        // 1. setup
            // capture a cache of all the list items
            // chomp the list down to limit li elements
        var jQuerylist = jQuery(this),
            items = [], // uninitialised
            currentItem = limit,
            total = 0, // initialise later on
            height = jQuerylist.find('> li:first').height();
            
        // capture the cache
        jQuerylist.find('> li').each(function () {
            items.push('<li>' + jQuery(this).html() + '</li>');
        });
        
        total = items.length;
        
        jQuerylist.wrap('<div class="spyWrapper" />').parent().css({ height : height * limit });
        
        jQuerylist.find('> li').filter(':gt(' + (limit - 1) + ')').remove();

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