jQuery and WP 2.7

Hello! I have been banging on this for awhile, and for all the searching in WP docs/forums and Google, I can’t seem to find the answer. Any help will be GREATLY appreciated.

I am trying to use jQuery to perform a simple .show and .hide effect in combination with a .hover on a menu to fade subpages. I believe my CSS and HTML are in order, because I get the menus as desired when hovering/etc but Java isn’t fading them… I just want jQuery to fade them in order to be uber cool ??

I’ve tried with and without wp_register_script and/or wp_enqueue_script (in either functions.php or header.php) which places the jquery library call in the wp_head section — then called my .hover .show .hide script prior to the wp_head call in my header. I also fixed using $ vice jQuery in the script. No joy in IE7 or FF3. ??

Here’s what I have right now in my template’s header.php:

<?php wp_enqueue_script('jquery'); ?>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/scripts/fademenu.js"></script>

<?php wp_head(); ?>

Here’s the content of my script fademenu.js (in my [theme]/scripts folder):

/* <![CDATA[ */
jQuery(document).ready(function() {
jQuery("#fademenu ul").css({display: "none"}); // Opera Fix
jQuery("#fademenu li").hover(function(){
jQuery(this).find('ul:first').css({visibility: "visible",display: "none"}).show('slow');
},function(){
jQuery(this).find('ul:first').css({visibility: "hidden"}).hide('slow');
});
});
/* ]]> */

Am I missing something simple? Does WP 2.7 have issues with jQuery? I’ve seen all kinds of posts indicating jQuery is being implemented in other 2.7 installs… Help! Thanks ??