This project was made by my group at Newcastle university in UK. It fades a LED while you are pressing a button. The LED has a red and green colour. It starts from the red colour and fades through several colours to green. Then it starts from red again and so on.
http://www.youtube.com/watch?v=BsNnsqpLJUM
http://www.youtube.com/watch?v=BsNnsqpLJUM