Two pieces of code for you:
var show = 9;
var current = show - 1;
var length;
var gallery = $('#gallery');
var galleryItems = gallery.children('li');
length = galleryItems.length;
setInterval(function(){
current = (current+1)%60;
galleryItems.eq(current).slideDown();
galleryItems.eq(current - show).slideUp();
}, 3000);
This would shift the whole list upwards one item at a time. See: http://jsfiddle.net/VL646/1/
var show = 9;
var current = 0;
var length;
var gallery = $('#gallery');
var galleryItems = gallery.children('li');
length = galleryItems.length;
setInterval(function(){
for(var i = current; i < (current+show); i++){
galleryItems.eq(i).fadeOut(300, function(){
var idx = (galleryItems.index(this) + show) % length;
galleryItems.eq(idx).fadeIn(300);
});
}
current += show;
if(current > length) current = 0;
}, 4000);
And this would fade in and fade out groups of items together. See: http://jsfiddle.net/DtFwH/
The main thing to keep in mind here is the setInterval() function, which keeps running a function over and over again, and the .eq(n) function, which gets the nth element of the current jQuery object.