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Click on " Design " Tab

Click on " Edit Html " Tab

Press " Ctrl + F " and Find
</HEAD>

Ok !!! Now Copy below Java Script code and paste it just before the </head> tag .

<script src='http://ajax.googleapis.com/ajax/libs/jquery/1.3.2/jquery.min.js' type='text/javascript'></script>
<script type='text/javascript'>
//<![CDATA[

/* ------------------------------------------------------------------------
    s3Slider

    Developped By: Boban KariÅ¡ik -> http://www.serie3.info/
 CSS Help: Mészáros Róbert -> http://www.perspectived.com/
    Version: 1.0

    Copyright: Feel free to redistribute the script/modify it, as
               long as you leave my infos at the top.
-------------------------------------------------------------------------- */

(function($){

$.fn.s3Slider = function(vars) {

 var element     = this;
 var timeOut     = (vars.timeOut != undefined) ? vars.timeOut : 4000;
 var current     = null;
 var timeOutFn   = null;
 var faderStat   = true;
 var mOver       = false;
 var items       = $("#" + element[0].id + "Content ." + element[0].id + "Image");
 var itemsSpan   = $("#" + element[0].id + "Content ." + element[0].id + "Image span");

 items.each(function(i) {

     $(items[i]).mouseover(function() {
        mOver = true;
     });

     $(items[i]).mouseout(function() {
         mOver   = false;
         fadeElement(true);
     });

 });

 var fadeElement = function(isMouseOut) {
     var thisTimeOut = (isMouseOut) ? (timeOut/2) : timeOut;
     thisTimeOut = (faderStat) ? 10 : thisTimeOut;
     if(items.length > 0) {
         timeOutFn = setTimeout(makeSlider, thisTimeOut);
     } else {
         console.log("Poof..");
     }
 }

 var makeSlider = function() {
     current = (current != null) ? current : items[(items.length-1)];
     var currNo      = jQuery.inArray(current, items) + 1
     currNo = (currNo == items.length) ? 0 : (currNo - 1);
     var newMargin   = $(element).width() * currNo;
     if(faderStat == true) {
         if(!mOver) {
             $(items[currNo]).fadeIn((timeOut/6), function() {
                 if($(itemsSpan[currNo]).css('bottom') == 0) {
                     $(itemsSpan[currNo]).slideUp((timeOut/6), function() {
                         faderStat = false;
                         current = items[currNo];
                         if(!mOver) {
                             fadeElement(false);
                         }
                     });
                 } else {
                     $(itemsSpan[currNo]).slideDown((timeOut/6), function() {
                         faderStat = false;
                         current = items[currNo];
                         if(!mOver) {
                             fadeElement(false);
                         }
                     });
                 }
             });
         }
     } else {
         if(!mOver) {
             if($(itemsSpan[currNo]).css('bottom') == 0) {
                 $(itemsSpan[currNo]).slideDown((timeOut/6), function() {
                     $(items[currNo]).fadeOut((timeOut/6), function() {
                         faderStat = true;
                         current = items[(currNo+1)];
                         if(!mOver) {
                             fadeElement(false);
                         }
                     });
                 });
             } else {
                 $(itemsSpan[currNo]).slideUp((timeOut/6), function() {
                 $(items[currNo]).fadeOut((timeOut/6), function() {
                         faderStat = true;
                         current = items[(currNo+1)];
                         if(!mOver) {
                             fadeElement(false);
                         }
                     });
                 });
             }
         }
     }
 }

 makeSlider();

};

})(jQuery);

//]]>
</script>
<script type='text/javascript'>
$(document).ready(function() {
$('#s3slider').s3Slider({
timeOut: 4000
});
});
</script>
<style type='text/css'>
#s3slider {
background:#000000;
border:1px solid #818e8f;
width: 550px;
height: 200px;
position: relative;
overflow: hidden;
}
#s3sliderContent {
width: 550px;
position: absolute;
top:-14px;
padding: 0px;
margin-left: 0;
}
.s3sliderImage {
float: left;
position: relative;
display: none;
}
.s3sliderImage span {
position: absolute;
left: 0;
font: 20px Trebuchet MS, sans-serif;
padding: 10px 0px;
width: 550px;
background-color: #000;
filter: alpha(opacity=80);
-moz-opacity: 0.8;
-khtml-opacity: 0.8;
opacity: 0.8;
color: #fff;
display: none;
bottom: 0;
text-align:center;
}
.clear {
clear: both;
}
</style>

 Save Template.....
Next Step !!!!
Click on " Design "
Click on " Add New Gadget "
Select " Html / Javascript "
Copy below Html code and paste it and Save !!!
See results

<div id="s3slider"><ul id="s3sliderContent">

<li class="s3sliderImage"><a href="YOUR-LINK-HERE"><img style="width:550px;height:200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilS6btCc0cqIi9JuNXEGcGGO-e3EKFctthfM_kpgL9Q8Ep391rtgjG6G-LtN6lB-2jKT45_Z8i7L7udfnzw1erfji-dz7CGBa_o_14v2yohoTyfbzQRBEgVu5o9vKv27YsYwK4GtdlAtBY/s320/1.JPG" /><span> Your Text </span></a></li>

<li class="s3sliderImage"><a href="YOUR-LINK-HERE"><img style="width:550px;height:200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgu_u9TSD1NAp5LMVRprbI2JdYUIRppwxLn_7QSWE8_fxDCzZx6lmC1CCUgMcVgOSXEEiJ_M2Ulr0agBUHx8pIDzjdSD81qre7qZ1Njj0LcfL60Xh7FX3xpUBFPidB-0lisk33csSmDKq82/s320/2.jpg" /><span> Your Text </span></a></li>

<li class="s3sliderImage"><a href="YOUR-LINK-HERE"><img style="width:550px;height:200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5wd0DybLLeJSdK2cw9ghotF-NND5Vv_LkRv5xeKz7sVZbQiSunW_0wUcUoXiK6ew59C3kR1r3nBVI_5E0fznexss_VG0As_m77M30iC5X3nQ4xeXB-0cEw2wvfHpdaswONIhWLobgDCpw/s320/3.jpg" /><span> Your Text </span></a></li>

<li class="s3sliderImage"><a href="YOUR-LINK-HERE"><img style="width:550px;height:200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFBHB5PZcqPw9u58Iblk3KEdqIV76NzB4fLMTspiCsWWpcpIinU4H6fgmn_FafYxASvDo3e9Xb4K3VLUugRsNxlR6qlAPvwO9xptVBOQJKtzymsKBIqxSF7THrtCX3R4jt6QFH4MnMEwij/s320/4.jpg" /><span> Your Text </span></a></li>

</ul></div>

<div class='clear'></div>

 Ipmortant Tip
Increase or Decrease speed of slideshow, change the value 4000.