Jquery :: Slideshow Breaks When Linking Image In DIV Set?

Below is a very simple jquery slideshow script which functions exactly as it should. But, if I link an image in the DIV set (See proposed change section) the slideshow breaks, instead of cycling through each image in turn it keeps trying to cycle the first image over and over. Script linking in header of HTML page:

<script type="text/javascript" src="script/jquery-1.2.6.min.js"></script>
<script type="text/javascript" src="script/slideshowsc.js"></script>
CSS on HTML controlling DIV position/opacity

#slideshow {
position:relative;
height:186px;
}
#slideshow IMG {
position:absolute;
top:0;
left:20px;
z-index:8;
opacity:0.0;
}

#slideshow IMG.active {
z-index:10;
opacity:1.0;
}

#slideshow IMG.last-active {
z-index:9;
}

DIV setup in HTML page
<div id="slideshow" style="padding-top:15px; text-align:center; width:540px; padding-bottom:43px;">
<img src="images/did-u-know1.png" width="499" height="186" border="0" class="active" />
<img src="images/did-u-know2.png" width="499" height="186" />
<img src="images/did-u-know3.png" width="499" height="186" />
</div>

Proposed Changi in DIV Code here
<div id="slideshow" style="padding-top:15px; text-align:center; width:540px; padding-bottom:43px;">
<a href="whatever.html><img src="images/did-u-know1.png" width="499" height="186" border="0" class="active" border="0" /></a>
<img src="images/did-u-know2.png" width="499" height="186" />
<img src="images/did-u-know3.png" width="499" height="186" />
</div>

Finally, Javascript / Jquery fired through body tag onload
function slideSwitch() {
var $active = $('#slideshow IMG.active');
if ( $active.length == 0 ) $active = $('#slideshow IMG:last');
// use this to pull the images in the order they appear in the markup
var $next = $active.next().length ? $active.next()
: $('#slideshow IMG:first');

// uncomment the 3 lines below to pull the images in random order
// var $sibs = $active.siblings();
// var rndNum = Math.floor(Math.random() * $sibs.length );
// var $next = $( $sibs[ rndNum ] );

$active.addClass('last-active');
$next.css({opacity: 0.0})
.addClass('active')
.animate({opacity: 1.0}, 1000, function() {
$active.removeClass('active last-active');
});
}

$(function() {
setInterval( "slideSwitch()", 8000 );
});