Hi Anirudha
There can be a ton of things that might be going wrong here and it would be helpful for yourself if you could provide more details like folder paths, jquery version etc. and what exactly you are trying to achieve.
http://weblogs.asp.net/scottgu/archive/2008/11/21/jquery-intellisense-in-vs-2008.aspx
Following this blog post from Scott Gu in detail can help solve almost all your problems, but in case you are still stuck, please post the finer details and I would be glad to help.
Cheers
Sreenath