Not sure i catched what you need but this should be ok, try :
$(function(){
$("img#thumb").bind('click',function () {
var img = $(this).clone(); //this clones the img, so you do not need to re-load that using src path
$(this).fadeOut(500);
$("img#cover").hide().html(img).fadeIn(500); //remove .hide() segment if you just are hiding by css rules
});
});