Dunno if this is the effect type you wanted. But i threw it together anyway.
Pick up a copy of photoshop, you can make wonderful things!
I think yours is depixeling then repixeling to each image and not the fading he wants but thats jsut my opinion.
Like this? This I did with using crappy Windows Movie Maker so some1 would have to redo this with wutever good program their is.
Ships
<strike>Metroid- VIPER MKII - Licensed for nomads in both liberty and bretonia houses
Cargo Metroid- CSV - Unlicensed (I'm not gonna license my Cargo person)</strike>
Gonna start anew...