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Patch the fancybox js file to make it work with jQuery v1.9.0 as follow :

Open the jquery.fancybox-1.3.4.js file (full version, not pack version) with a text/html editor.
Find around the line 29 where it says :

isIE6 = $.browser.msie && $.browser.version < 7 && !window.XMLHttpRequest,
and replace it by (EDITED March 19, 2013: more accurate filter):

isIE6 = navigator.userAgent.match(/msie [6]/i) && !window.XMLHttpRequest,
UPDATE (March 19, 2013): Also replace $.browser.msie by navigator.userAgent.match(/msie [6]/i) around line 615 (and/or replace all $.browser.msie instances, if any), thanks joofow ... that's it!