When we build client websites we try to use premium plugins as much as possible. Like themes, premium plugins form reliable developers are better supported and updated frequently.
One of our favorite plugin publishers is Pluginbuddy (a division of iThemes) who has created a series of Displaybuddy tools one of which is Rotating Images. Although it is a premium product (you have to pay for it) we often include it with web design/development projects.
Below is a quick video that shows the basics of how to use Rotating Images. To view this in full-screen mode click the TV image in the lower right hand corner of the video player.
Update:
After publishing this video a couple readers informed me that I neglected to show how to embed links in the images. Sorry about that. Rather than make a new video thee screen shot below will show you
