I have updated my Fancybox Gallery plugin to version 0.3.1.
Fancybox Gallery will automatically turn your photo galleries generated by the WordPress ‘gallery’ shorttag into a dynamic lightbox.
New in version 0.3 is the ability to navigate to the next/previous image while in lightbox mode. Another change is that this version requires jQuery version 1.3.2, and thus you’ll need to be using WordPress 2.8. If you are running an older version of WordPress, but the newer version of jQuery, the plugin should work, but I don’t think that the navigation feature will be present (I believe that the changes in the gallery code which enabled me to add it are new in WP 2.8).
Here is an example of the plugin in action. Click on an image to load the larger view. Note that you can navigate to the next or previous images by clicking on the right or left side of the image. Click the ‘X’ close icon or anywhere outside of the image to dismiss the lightbox.