jQuery Cycle — the code that powers this plugin — is not responsive. There are some workarounds, all of which require a small bit of coding.
But if you are comfortable coding, then I recommend using a solution that doesn’t need to be hacked into behaving semi-responsively. I like this one: http://www.woothemes.com/flexslider/
here is a quick fix I used, which requires jQuery, and for all of your images to be the same height.
<script>
function responsiveSlider() {
jQuery("#rotator").height(jQuery("#rotator img").first().height());
}
jQuery(window).load(responsiveSlider);
jQuery(window).resize(responsiveSlider);
</script>
then in your css something like `
#rotator {
width: 100%;
max-width: 960px;
}`