This is a work in progress so, be gentle. I was at a website last week when it occured to me a smoother mouse over transition could be had be scripting image settings to a timer.

Complete script will be at the end of this post. First, we start with a basic red object:

 

Next we set up the hue settings When we load the object the colour would then be:

 

Next we will set up our state changes & the relevant timers:

Initial Fade will look like this:

 

Final Colour should be similar to this:

 

Dim hueAway
Dim hueOver
Dim hueDown

'Called when the script is executed
Sub Object_OnScriptEnter
    hueAway = 100
    hueOver = 124
    hueDown = 135

    'Sets Object Hue on load
    Object.Hue = hueAway
End Sub

Sub Object_OnStateChange(state)
If state="Mouse over" Then
        Object.SetTimer 100, 75
        Else
        If state="Mouse away" Then
        Object.SetTimer 200, 75
            Else
            If state="Mouse up" Then
            Object.Hue = hueAway
                Else
                If state="Mouse down" Then
                Object.Hue = hueDown
        End If
        End If
        End If
    End If
End Sub

'Increase the hue until it reaches the hueover aka Target Mouse Over colour
Sub Object_OnTimer100
If Object.Hue => hueAway Then
    If Object.Hue <=hueOver Then
         Object.Hue = Object.Hue + 2
      Else
           Object.SetTimer 200, 75
           Object.KillTimer 100
     End If
     End If
End Sub

'Decreases the hue until it returns to away state colour
Sub Object_OnTimer200
If Object.Hue => hueOver Then
     Object.Hue = Object.Hue - 2
      Else
           Object.KillTimer 200
     End If
End Sub


'Called when the script is terminated
Sub Object_OnScriptExit
Object.KillTimer 100
Object.KillTimer 200
End Sub

Basically, you end up with smooth slow fade. Now you should notice why I indicate this is a work in progress as the colours don't match up exactly due to the simplicity of the script. I'm working on a more advance version based on the sliding object script from the gallery and will post the object when or if completed.