I am looking for a suggestion on which jquery plugin will achieve what I want.
Basically I want to have 5 images on the page which change (fade in/out) automatically and when clicked on the image it goes to a page relative to the image.
For example: http://www.lorigrahamdesign.com/index.php?
In the page above there are images that fade/in/out automatically and there is a difference of some time so the transition looks good.
What is the best way to achieve this using jquery?
While not fading, it does do sliding and is really cool and incredibly easy to use and get working:
You could take a look at this as well: jQuery Tools
Since there are much configuration options it should be easy to add some appear-effects.
If you are open to something outside of jquery, you may want to look at this mootools plug-in. slideshow
Check out this plugin. It's a little different from your example, but maybe you like it.