Ok got it working, for those that want to do a similar thing this is the secret sauce
$(function() {
$('#slideshow').cycle({
timeout: 0,
pagerEvent: 'mouseover',
pager: '#nav',
pagerAnchorBuilder: function(idx, slide) {
return '<li><a href="#"><img style="position:absolute;left:-150%;top:-150%;"" src="' + jQuery(slide).find('img').attr('src') + '" height="150px" width="150px" /></a></li>';
}
});
});
NOTE this code change
src="' + jQuery(slide).find('img').attr('src') + '"
Once thats done it will look like this :)