Combining led blink and fade (PWM)

You need to create a state machine for that. It is done by doing something like:

byte state = 0;

//Other code

void loop()
{
  switch(state)
  {

    case(0):
      fadeAllInAndOut();
      state++; //Pseudo-code - this should be done when state has finished
      break;

    case(1):
      fade7InAndOut();
      state++;
      break;

    case(2):
      fade6And8InAndOut();
      state++;
      break;

    //More states here

    default: //If no state is triggered, reset state to 0
      state = 0;
      break; //Not needed, just for good measures
  }
}