This looks excellent, but I get an error for each image in the files/slideshow_images dir, and no output:-

warning: array_merge() [function.array-merge]: Argument #2 is not an array in /home/halftone/public_html/test/sites/all/modules/fade_slideshow/fade_slideshow.module on line 158.

I use Drupal private filesystem. Is that the problem here?