I've whipped up a minimal proof-of-concept demo. It's written as a proper jQuery cycle transition plugin.
Depending on how happy you are with playing with the code, it should provide a good starting point. I have started working from the shuffle transition myself, as that seemed to be the only transition that did more than to manipulate CSS properties, which I think doesn't suffice for what you were aiming for.
Since I've neither used jQuery Cycle before, nor written transition plugins for it, it's entirely possible that I've committed cardinal sins in some details of how it's written.
Also, it can surely be optimized. At this stage, it's written for clarity first, performance second. However, on my (rather fast) machine, the animation and reaction time are fluent and instantaneous.
So, there you have it.
edit: The demo page now includes documentation for additionally exposed options and a few examples that demonstrate how to achieve some different effects just by passing different options.
edit 2: I have generalized the strips to tiles and put many more examples on the demo page.