First, make sure the size of the div is the same as the image size. This div has another background image, as follows:
< ;script type="text/javascript">
$(document).ready(function () {
$(".fade").hover(function () {
$(this). find("img").stop(true, true).animate({ opacity: 0 }, 500);
}, function () {
$(this).find("img").stop (true, true).animate({ opacity: 1 }, 500);
});
});