The only way you can do with without the "aparent" refershing of the PHP page would be in my opinion, an iframe.
This would be especially easy if all of the pictures are the same size/orientation.
The fade in/out would be a Javascript and would be browser dependant.
You could load the iframe, and have a function to load the images in an array, and pass parameters (or session data) of which picture is to be displayed next.
There is a random image generator that someone else was asking about, you could use the same sort-of idea. [thread=10338069]Here[/thread].
I would recommend using a for statement (much like the program calls for) but instead of displaying x number of images, have it just auto increment a variable (such as a session var).
If I havn't confused you anyways.