How do I put this method in application.js?

I want to make the markup on the home page of http://Notipal.com valid XHTML strict, but I don't know how to move the inline javascript on the 'error_facts' (the scrolling div with links) in to the application.js. The javascript is included inline (grabbed it from a tutorial) underneath the div.

The following attempt threw errors on the scrollMe, apparently it 'isn't defined' - presumably this means the 'scrollMe' function needs handling or defining differently when this whole function is moved to a var in the application.js, like so;

$(document).observe('dom:loaded', function() {
    setup_site_switch()
    setup_error_facts()    
})
var setup_site_switch = function() {
.
.
.
}    
var setup_error_facts = function() {
    if($('error_facts')) {    
        var boxHeight = $('error_facts').style.height.replace('px','')
        var repeatHeight = $('error_facts').scrollHeight //get the current height so we know when to wrap
        $('error_facts').innerHTML = $('error_facts').innerHTML + $('error_facts').innerHTML  //add a second copy so we can scroll down to the wrap point
        var stopScroll = 0
        var x
        function scrollMe() {
            clearTimeout(x)
            if(stopScroll==1) {
                return
            }
            $('error_facts').scrollTop=$('error_facts').scrollTop+1
            if($('error_facts').scrollTop<=repeatHeight) {
                // keep on scrolin' 
                x = setTimeout("scrollMe()",40)
            }
            else { //we have hit the wrap point
                $('error_facts').scrollTop=0
                x = setTimeout("scrollMe()",40)
            }
        }
        x = setTimeout("scrollMe()",1000)
        // start scrolling after one second        
    }
}

Does anyone know how I do this?