Apply CSS and Javascript affect to images
I have done a CSS only alternative for you.

http://jsfiddle.net/bk5h7/

EDIT: In answer to the JS not working in Drupal, you may need to wrap any document ready JS in behaviour tabs, and/or declare jQuery.

This will also help if you use it in a view that uses AJAX. Putting it in a behaviour instead of document ready, means the JS will load again even on every AJAX request.

(function($) {
Drupal.behaviors.myBehavior = {
  attach: function (context, settings) {

        // Put your jQuery Code Here

  }
};
})(jQuery);


EDIT 2: The demo uses jQuery 1.9.1, whereas Drupal 7 is shipped with 1.4.4. Maybe try using the jQuery Update module to update your version.

EDIT 3: What are you using to load the Modernizr.js script? That touch function you are talking about relies on device detection using Modernizr.js.

Copy the modernizr.js file to your themes JS folder, and in your themes template.php file, try adding...

drupal_add_js(drupal_get_path('theme', 'YOUR_THEME') . '/js/modernizr.js');