jCarousel Problem - Hover images opacity settings

Question

Hi, So far I have got jCarousel to display, and load the images via a txt file,

What I want to do is show 4 images at a time, then when the user puts the mouse over 1 of the images the other 3 images to fade opacity, to 30%. Then if they move the mouse to the image next to it I want that image to be 100% opacity and the other 3 images 30% opacity.

So the image with the mouse over it will always be 100% opacity, and the others 30%, so it stands out. When the user moves the mouse out of the jCarousel box I want all images to show 100% opacity.

I'm using code similar to stackoverflow.com/questions/901194/jquery-mouse-over-fade-in-out-click-opacity-100-other-click-op

Thanks.

Edit

Sorry I should have added code before, here it is: http://pastebin.com/m54cd73d8 This is what I have so far nickrance.co.uk/jcarousel/dynamic_ajax.html It kind of works, it fades the inactive images, but I think it needs a mouseout event to restore the opacity of all images when the mouse moves out of the jCarousel div. Also, it seems to be only working for the first 4 images, and I have 10 images in the carousel, the others don't seem to do anything :s

New Current code: So far

 
$(window).bind("load", function() {
    var activeOpacity   = 1.0,
        inactiveOpacity = 0.3,
     testOpacity = 0.3,
        fadeTime = 50,
        clickedClass = "selected",
        thumbs = "#mycarousel li";

  $(thumbs).fadeTo(1.0, activeOpacity);

    $(thumbs).hover(
        function(){

      $(thumbs).fadeTo(fadeTime, inactiveOpacity);

       $(this).fadeTo(fadeTime, activeOpacity);
        },
        function(){
            // Only fade out if the user hasn't clicked the thumb
            if(!$(this).hasClass(clickedClass)) {
                $(this).fadeTo(fadeTime, activeOpacity);
            }
        });
     $(thumbs).click(function() {
         // Remove selected class from any elements other than this
         var previous = $(thumbs + '.' + clickedClass).eq();
         var clicked = $(this);
         if(clicked !== previous) {
             previous.removeClass(clickedClass);
         }
         clicked.addClass(clickedClass).fadeTo(fadeTime, activeOpacity);
     });
});