Changing modes with one touch button; on-mode1-mode2-mode3-off-on-mode1, etc.

u have to use npn transistor to power your leds i don t thinks lily pad can handle 5 leds per pin, read this post http://lanavajadelgeek.blogspot.com.ar/2011/07/aprende-como-funciona-un-interruptor.html use google traslator :stuck_out_tongue: to traslate all the page

realy is very easy in general a transistor (npn) have 3 leg base, emiter, colector

base: is the pin that recive the signal from the arduino (micro, ect) and let pass voltage from colector to emiter
emiter: conected to comond ground
colector: conected to the ground of the led

and the code u can use raw code, a variable "state"

if (state == 3) { 
           state = 0;
                    }

 if (button1 == HIGH){
           state++;
                             }

if (state == 0) {do something1;}
if (state == 1) {do something2;}
if (state == 2) {do something3;}
if (state == 3) {do something4;}

this is an idea no the actual code you have to add the timer to the button to lock him from been trigger alot of times in 1 push