Oops - I meant to make the delay in the loops a variable but they are both set to 100mS per step....these could obviously changed so the the entire fade-up/down cycle would fit in the 8 second timer for the Watchdog, and then get reset appropriately. Regardless, the problem isn't with the functionality of the WDT - it seems to be with the environment I am running the IDE in (at least to me, but if I knew how to fix it I wouldn't be bothering you guys for help...).