effect transitions

I'm trying to have a seamless transition between the last and first image of my slideshow. I've tried fading the last image out before it loops, but it fades out to the previous image of course. After the last image, it jumps right to the first image and I can't figure out how to transition properly so it's not so obvious. The slideshow can be viewed at www.lazys.net/lsm/lazy_s_morgans.htm.
Thanks!

Much easier to troubleshoot with the .swi attached, but...

In this case, I would use a Remove action on the image underneath the last pic. That way when the last image fades out, there is only a white background.

-- OR --

Fade in the first pic at the END of your movie, then create a loop back to the beginning where the first image is faded all the way in. Max example: