How to include Tipsy Tooltip into WordPress?

Hi, I’ve desperately been trying to include a very simple tooltip called Tipsy Tooltip into my WordPress powered site. There are 3 basic steps in order to make it run:

1) Include the .js file– I did that (after wp_head() ) like this:

<script type="text/javascript" src="<?php bloginfo("template_url"); ?>/js/jquery.tipsy.js"></script>

2) Include the CSS – I just copy/pasted into theme’s style.css

3) Call the script! – Here is where my problem starts. I simply have to add the following function:

<script type="text/javascript">
$function() {
 $('#south').tipsy({gravity: 's'});
};
</script>

But it always gives me an error and the tooltip won’t work. I have read about properly including javascript files into WordPress but I can’t figure out how to do it! Could please someone help me with step 3 and provide me an example of how to call the function?

Thanks a lot!