When using analogWrite, you must use a number between 0 and 255. Don't use HIGH or LOW.
When using digitalWrite, you must use HIGH or LOW.
The variable you set to HIGH in the setup, that's a variable, not an LED!!
In one of my projects, a Piezo speaker beeps in the setup.
Do you have one? If you do, take a PWM pin not being used, for example, 3. Connect the + to 3 and - to GND.
In the setup write [note the last line]:
tone(BeeperPin, 3000, 1000); // Play tone for 1 second
delay(1000); // Delay to finish tone
pinMode(fadingled,OUTPUT); //declare all LED's as outputs
Make these changes. Good Luck.