I think the error is in jQuery code line 5
instead of
$('#previewheight1 img').attr('src', $this.src).fadeIn();
get src value using attr of prop :
$('#previewheight1 img').attr('src', $this.attr('src')).fadeIn();
or
$('#previewheight1 img').attr('src', $this.prop('src')).fadeIn(); // use prop as of jQuery 1.6