Update to my post here – I’ve tweaked the script to use CSS3 transitions on Firefox 4+ and Opera 10.50+ as well as modern webkit based browsers such as Chrome and Safari.

The CSS3 transforms and transitions enhanced carousel can be found here:
freestyle-developments.co.uk/demo/public/portsurf/?css3

…and the normal carousel:
freestyle-developments.co.uk/demo/public/portsurf/

Source code for CSS3 transforms and transitions enhanced carousel

N.B. The normal carousel works in IE7 and IE9 beta, but not in IE8 (it seems IE8 can’t figure out the dimensions of DOM elements properly).