[jQuery] (this) question

[milkshake]

Hello, a beginners question:

*/ JS
----------------------------------------------------- */

$('.wallpaper').each(function(){

        $(this).find('.images > .anim').hide();

        $(this).find('.buttons > .anim').click(function(event){
                $('p').toggleClass( 'rainbows' );
                $(this).find('p').toggleClass('fraggle');
                // $(this).find('.images > .anim').show();
                // $(this).find('.images > .static').hide();
                return false;
        })
});


*/ HTML
----------------------------------------------------- */

<div class="wallpaper">
        <div class="images">
                <p class="static"><img src="blah-static.jpg" /></p>
                <p class="anim"><img src="blah-anim.gif /></p>
        </div>
        <div class="buttons">
                <p class="static"><a href="#">Static</a></p>
                <p class="anim"><a href="#">Animated</a></p>
        </div>
</div>

It seems I'm not able to pass the (this) keyword on to the click/event
function.

$('p').toggleClass( 'rainbows' ); // works
$(this).find('p').toggleClass('fraggle'); // not working

Each ".wallpaper" div should be sandboxed so that the methods(?) only
work inside that particular div instance.
Is there a better way to do this?
(the commented out .show + .hide are what I'm really after, just using
toggleClass for testing).

Thanks in advance :)