Your IDs are #1, and cycle just wants a number passed to it. You need to remove the # before calling cycle.
$('a.pagerlink').click(function() {
var id = $(this).attr('id');
$container.cycle(id.replace('#', ''));
return false;
});
Also, IDs shouldn't contain the # character, it's invalid (numeric IDs are also invalid). I suggest changing the ID to something like pager_1.
<a href="#" id="pager_1" class="pagerlink" >link</a>
$('a.pagerlink').click(function() {
var id = $(this).attr('id');
$container.cycle(id.replace('pager_', ''));
return false;
});