Since you didn’t really explain what you’re having trouble with, I just created a general solution. Hopefully this helps:
var li = $('li');
var liSelected;
$(window).keydown(function(e) {
if(e.which === 40) {
if(liSelected) {
liSelected.removeClass('selected');
next = liSelected.next();
if(next.length > 0) {
liSelected = next.addClass('selected');
} else {
liSelected = li.eq(0).addClass('selected');
}
} else {
liSelected = li.eq(0).addClass('selected');
}
} else if(e.which === 38) {
if(liSelected) {
liSelected.removeClass('selected');
next = liSelected.prev();
if(next.length > 0) {
liSelected = next.addClass('selected');
} else {
liSelected = li.last().addClass('selected');
}
} else {
liSelected = li.last().addClass('selected');
}
}
});
JSFiddle: http://jsfiddle.net/Vtn5Y/