Yes, those are set as you described. Basically the slideshow option is not compatible with the Newscast template, correct?
Yes, custom effect is selected with the code above. Using the latest newscast, v2.0.2.
The result is a brief spinning wheel.
Flash is disabled. If I disable custom.js (by renaming the file), the slideshow works. Only plugins installed in this instance are Newscast and Nextgen gallery.