I was thinking the same Rykor, it reminds me a bit of the computerized slideshows we made in college. (20 years ago!)
I'ld go for the second one, Ryan, without asking yourself a lot of whys, it looks very good!
It may not solve all of your problems but I would suggest upgrading to 1.52 (if you are still using 1.51) and scale all your graphics to 99% during their fade in. The reason I suspect 1.51 is that there is a slight jump to the images as the reach the end of fade in - scaling and 1.52 resolve this - I am not sure if they will resolve the timing issue - that may be a server problem (does it look the same on your home machine). You might need a short preloader.