I have two images of the same radial venn diagram, created in Powerpoint. I grabbed them with Jing and create pngs: ILM_model and ILM_Mod1 (see images below).
I want one image to fade into the other so it looks like I'm just highlighting the center and the Supporting node. I tried just having one fade out while the other fades in, but I get this weird red and yellow distortion around the edges during the cross-fading. Additionally, the image quality is deteriorated. I took a screen capture to show you.
Check the Quality setting on the slide/s where you have this diagram and set to High Quality. Your screencast looks like you might only be using Low (8bit) quality at the moment.
That was it! Thank you!