This website
http://canvas.is/#/work
uses the jquery infinite slider with some heavyish manual changes to create the effect (ignore the mulitple other effects on the site.

Is has all the LI slides set display inline.

All are set with an opacity of 0.2 and then when the slide becomes "active" the opacity is changed.

I want to create something like this myself so was wondering if there was a slider that did this off the shelf that I could look at to see the overal concept of how it's done correctly.

Anyone give me some pointers?