Stuck with a simple error. Noob needs little help.

Stuck with a simple error. Noob needs little help.

Greetings everyone!

I'm trying to run LavaLamp on my local WP install, but am getting some error. Please take a look at this code and and tell me what is wrong with it.

<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.gallery.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.lavalamp.1.3.2-min.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.easing.1.3.min.js"></script>
<script type="text/javascript" src="<?php bloginfo('template_directory'); ?>/js/jquery.easing.compatibility.js"></script>
<?php } ?>
<script type="text/javascript">
jQuery(function(){
   //Portfolio Fade in/out
   jQuery('#content div.portfolio').hover(function(){
      jQuery(this).find('img').fadeOut();
   }, function(){
      jQuery(this).find('img').fadeIn();
   });
   <?php if(is_single(!in_category($blog_ID))) { ?>
   jQuery('#gallery').gallery();
   <?php } ?>
});
$(function() {
$("#navi").lavaLamp({
fx: "backout",
speed: 800
});
});
</script>


The first script runs fine but the lavalamp doesn't. Firebug says this:

$ is not a function
[Break on this error] $(function() {\r\n

Any ideas?

BTW, Jquery runs from a separate function so it's not visible here.

Thanks in advance.