You're including a second version of jQuery after including the cycle plugin:
Code:
<script type="text/javascript" src="http://thecasualgourmet.us1.list-manage.com/js/jquery-1.2.6.min.js"></script>
This will overwrite the whole jQuery object and all its extensions, which means that the cycle method is, in fact, not there any more when the DOM ready event fires.
There's never a (good) reason to include more than one version of jQuery, so just remove it.