Change the jquery show()/hide() animation?

You can also use a fadeIn/FadeOut Combo, too....

$('.test').bind('click', function(){
    $('.div1').fadeIn(500); 
    $('.div2').fadeOut(500);
    $('.div3').fadeOut(500);
    return false;
});

Use slidedown():

$("test").slideDown("slow");

There are the slideDown, slideUp, and slideToggle functions native to jquery 1.3+, and they work quite nicely...

https://api.jquery.com/category/effects/

You can use slideDown just like this:

$("test").slideDown("slow");

And if you want to combine effects and really go nuts I'd take a look at the animate function which allows you to specify a number of CSS properties to shape tween or morph into. Pretty fancy stuff, that.