images are getting clipped when Jquery animate opacity is used in IE

Question

I use the function given below:

function rotate() {
            //Get the first image
            var current = ($('div#rotator ul li.show') ? $('div#rotator ul li.show') : $('div#rotator ul li:first'));

            //Get next image, when it reaches the end, rotate it back to the first image
            var next = ((current.next().length) ? ((current.next().hasClass('show')) ? $('div#rotator ul li:first') : current.next()) : $('div#rotator ul li:first'));

            //Set the fade in effect for the next image, the show class has higher z-index
            next.css({ opacity: 0.0 })
            .addClass('show')
            .animate({ opacity: 1.0 }, 1000);

            //Hide the current image
            current.animate({ opacity: 0.0 }, 1000)
            .removeClass('show');

        };

It does a slide show of images. It works perfect on Firefox and Google Chrome but clips the images in IE 7 and IE 8. Any help is much appreciated.

Thanks in advance.