Mushtaq,
I have implemented that script in the header of a website that I broke something else in - it works fine when you give the image path the full path to where the actual image is.
Where I placed the code was in:
includes/templates/MY_TEMPLATE_FOLDER/common/tpl_header.php. Then I took the code and placed it right inside the div tag: <div id="taglineWrapper"> javascript code </div>
If you would like to see it working you can see it at: http://www.bk-clothing.com/store/
I hope you can get it figured out!
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