Nivo Slider lists up the images instead of sliding I download this module with drush dl nivo_slider
Then enable and automatically download libraries with drush en nivo_slider
Then clean cache with: drush cc all
Then enable in block.

Then Firebug said: TypeError: $(...).nivoSlider is not a function
$('#slider').nivoSlider({

and chromium said: 
Uncaught TypeError: undefined is not a function nivo_slider.js?ne2hej:11Drupal.behaviors.nivoSlider.attach nivo_slider.js?ne2hej:11(anonymous function) drupal.js?ne2hej:76b.extend.each jquery.min.js?v=1.9.1:3Drupal.attachBehaviors drupal.js?ne2hej:74(anonymous function) drupal.js?ne2hej:412c jquery.min.js?v=1.9.1:3p.fireWith jquery.min.js?v=1.9.1:3b.extend.ready jquery.min.js?v=1.9.1:3H jquery.min.js?v=1.9.1:3

I'm using later version of Drupal 7
I think there's an installation priority issue with Nivo Slider module and Libraries API module or Nivo Slider library files.

Since you installed all required modules and placed Nivo Slider library files in the right location as explained in the installation steps:


  To install Nivo Slider:
  
  
  Download the latest version of the Nivo Slider jQuery plugin and
  extract it to sites/all/libraries or sites/sitename/libraries as you
  require. 
  The extracted folder must be named nivo-slider. Enable Nivo
  Slider and all of the modules that it requires. 
  Configure the jQuery
  Update module to use jQuery 1.7 or higher.
  


Now you need to disable Nivo Slider module by running this command drush pm-disable nivo_slider, then you need to uninstall Nivo Slider module by running this command drush pm-uninstall nivo_slider, then install Nivo Slider again by running this command drush en nivo_slider.

Don't forget to clear Drupal cache after you finish uninstalling and installing the module; just in case.