Solved:
Hi there guys, for me the problem was with the chronology of loading jquery. if you look in your header tag (on the screen that is supposed to show the cropping), you’ll notice that the cropping script is loaded right @ the top. Usually before jQuery (and other scripts) are loaded. So essentially, the jCrop script fires before jQuery is loaded and therefore gives an error.
All I did was manually load jQuery at the top (after the pingback link). and before the wp_head() function. Everything is working perfectly now…