Help with Arduino program

Yes, i think the code from PaulS looks really good with the modes and everything but the code i wrote was just something to show you what i wanted. Im not sure what is wrong with my code but it would help if someone could point that out. If i only want mode 1 and 2, how would i loop back to mode 1 if the button was pressed 3 times? Also, tuxduino, that sounds smart but i looked it up and i'm still not sure what a state machine does other that lets the program do other stuff during delays. Thanks