How I would use it.js

$('#foo1').foo();
$('#foo2').foo({bar:'baz'});


// later on, maybe in a event handler of something else. 
// These calls need the options set up above, but the way they are defined, 
// they are not in the closure of $.fn.foo function block
$('#foo1').foo('doFoo');
$('#foo2').foo('doFoo');

Stashing jQuery Options.js

(function($){
    
    $.fn.foo = function(options){
        
        // Handle API methods
	if(typeof arguments[0]=='string'){
	    // Perform API methods on individual elements
	    if(this.length>1){
		var args = arguments;
		return this.each(function(){
			           $.fn.foo.apply($(this), args);
                                 });
		};
	    
           // Invoke API method handler
	   $.fn.foo[arguments[0]].apply(this, $.makeArray(arguments).slice(1) || []);			                              
	   return this;
	}
        
        var options = $.extend($.fn.foo.options, options);
     
        // Is this OK?
        // stash the options on the items so we can use them in the API
        $(this).data('foo-options',options); 
        
        console.debug('options.bar = ',options.bar);
    };
    
    $.extend($.fn.foo, { doFoo: function(){                    
                                console.debug('in doFoo bar = ', $(this).data('foo-options').bar);
                                }
                        });

    $.fn.foo.options = { bar:'bar'};
    
})(jQuery);

I need to use the options in the API extensions, but not sure the best way to pass them down there.