Вставляем в body: 
 Code
<img src="http://fantasyflash.ru/avatar/ava_cat/image/cat28.jpg" style="filter:alpha(opacity=100)" onmouseover="nereidFade(this,40,60,10)" onmouseout="nereidFade(this,100,60,30)" border="0"> 
 <script> 
 nereidFadeObjects = new Object(); 
 nereidFadeTimers = new Object(); 
 function nereidFade(object, destOp, rate, delta){ 
 if (!document.all) 
 return 
     if (object != "[object]"){          setTimeout("nereidFade("+object+","+destOp+","+rate+","+delta+")",0); 
         return;//osw 
     } 
    clearTimeout(nereidFadeTimers[object.sourceIndex]); 
      
     diff = destOp-object.filters.alpha.opacity; 
     direction = 1; 
     if (object.filters.alpha.opacity > destOp){ 
         direction = -1; 
     } 
     delta=Math.min(direction*diff,delta); 
     object.filters.alpha.opacity+=direction*delta; 
     if (object.filters.alpha.opacity != destOp){ 
         nereidFadeObjects[object.sourceIndex]=object;//fantasyflash.ru 
         nereidFadeTimers[object.sourceIndex]=setTimeout("nereidFade(nereidFadeObjects["+object.sourceIndex+"],"+destOp+","+rate+","+delta+")",rate); 
     } 
 }</script>