I found this to be a bug in jquery-tools. Please use this version i changed myself while they don't fix it in their source.
I changed this:
if (b.rotate) {
var k = g.length - 1;
if (0 > a) return e.click(k, h);
if (a > k) return e.click(0, h)
}
To this:
var k = g.length - 1;
if (0 > a) if (b.rotate) return e.click(k, h); else a = 0;
if (a > k) if (b.rotate) return e.click(0, h); else a = k;
Also made a fiddle with your code to show it working: http://jsfiddle.net/bortao/k2f57/
Had to remove one <a>
since you had two tabs, and not three.