Hello,

Check the path to your script. I am also using the Nivo slider on a site and I put the Nivo code directly into the home page skin file. I have my Nivo js file in a folder named scripts in my skin directory and am referencing it like this: 

<script type="text/javascript" src="<%= SkinPath %>scripts/jquery.nivo.slider.js"></script>
<script type="text/javascript">
    $(window).load(function() {
        $('#slider').nivoSlider();
    });
    </script>

I then have the divs with the slides and captions coded into the skin. I probably could have done that in an html module.  I also noticed you are referencing lib/jquery... You don't need that because DNN loads it.

Hope this helps.

Rich