ok, so I downloaded Arduino 1.6.7 from arduino.cc and installed. I did all the steps again and it works successfully this time. what a relief! 
the blinking LED just makes my day. hahaha..
However, i get this message at the bottom of the IDE software:
Done uploading.
In file included from D:\Arduino.cc\hardware\arduino\avr\cores\arduino/Stream.h:26:0,
from D:\Arduino.cc\hardware\arduino\avr\cores\arduino/HardwareSerial.h:29,
from D:\Arduino.cc\hardware\arduino\avr\cores\arduino/Arduino.h:224,
from sketch\Fade.ino.cpp:1:
D:\Arduino.cc\hardware\arduino\avr\cores\arduino/Print.h:32:0: warning: "BIN" redefined [enabled by default]
#define BIN 2
^
In file included from d:\arduino.cc\hardware\tools\avr\avr\include\avr\iotn84.h:38:0,
from d:\arduino.cc\hardware\tools\avr\avr\include\avr\io.h:440,
from d:\arduino.cc\hardware\tools\avr\avr\include\avr\pgmspace.h:88,
from D:\Arduino.cc\hardware\arduino\avr\cores\arduino/Arduino.h:28,
from sketch\Fade.ino.cpp:1:
d:\arduino.cc\hardware\tools\avr\avr\include\avr\iotnx4.h:71:0: note: this is the location of the previous definition
#define BIN 7
^
Sketch uses 1,000 bytes (12%) of program storage space. Maximum is 8,192 bytes.
Global variables use 15 bytes of dynamic memory.
sample code i use:
/*
Fade
This example shows how to fade an LED on pin 9
using the analogWrite() function.
The analogWrite() function uses PWM, so if
you want to change the pin you're using, be
sure to use another PWM capable pin. On most
Arduino, the PWM pins are identified with
a "~" sign, like ~3, ~5, ~6, ~9, ~10 and ~11.
This example code is in the public domain.
*/
int led = 7; // the PWM pin the LED is attached to
int brightness = 0; // how bright the LED is
int fadeAmount = 15; // how many points to fade the LED by
// the setup routine runs once when you press reset:
void setup() {
// declare pin 9 to be an output:
pinMode(led, OUTPUT);
}
// the loop routine runs over and over again forever:
void loop() {
// set the brightness of pin 9:
analogWrite(led, brightness);
// change the brightness for next time through the loop:
brightness = brightness + fadeAmount;
// reverse the direction of the fading at the ends of the fade:
if (brightness == 0 || brightness == 255) {
fadeAmount = -fadeAmount ;
}
// wait for 30 milliseconds to see the dimming effect
delay(30);
}
