I don’t understand, there is no ‘fading’ in your linked image.
The scrolling can be acheived…I think there is a Jquery plug-in called Scrollspy(?) which might help.
How you achieve the layout of the individual images might be a little harder though.
I suggest you concentrate on the layout first before worrying about functionality.
Once you have the layout sorted, add in a simple hover function so yo can see each image working properly…then figure out how to automate that.