I just upgraded from 351 to 353 and enabled the fade in/out feature for my header images. The images do indeed fade in/out, but when I give my images a value of opacity, then the first image displays the opacity correctly but then thereafter the opacity disappears.
I tried enabling and disabling the 'Preload header images for Javascript rotation' option, but it didn't make a difference.
My site is http://zabaan.com
Thanks!