integrating slideshow script with new thumbnail post feature

I’m trying to integrate a s3slider script with the new WP thumbnail feature

here’s what I got so far.. it’s mostly guesswork as I’m new to php

<div id="s3slider">
   <ul id="s3sliderContent">
      <li class="s3sliderImage">
<?php
				$category_id =  get_post_meta($post->ID, "page_id", true);
				$limit = get_option('portfolio_limit', 10);
				$paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
				query_posts("cat=$category_id&showposts=$limit&paged=$paged");
			?> 

<?php if (have_posts()) : while (have_posts()) : the_post(); ?>

<?php the_post_thumbnail( 'featured' ); ?>
</li>
</ul>
 <ul id="s3sliderContent">
      <li class="s3sliderImage">
<span><?php the_excerpt(); ?></span>	

</li>
</ul>
 <?php endwhile; else: ?>
  <p><strong>There has been a glitch in the Matrix.</strong><br />
  There is nothing to see here.</p>
  <p>Please try somewhere else.</p>
 <?php endif; ?>

</div>

and the script is at https://www.serie3.info/s3slider/

The thumbnail and excerpt appear but the slide isn’t fading properly.. I think it has something to do with the loop I just can’t figure out what.. please help if you any idea.