OK- read the how to use this forum sticky post. Then go back and modify your post so that the it is posted correctly in code tags.
The software problem is caused by your use of the delay function. Do not use delay if you want to interrupt what is happening and make other things happen.
Look at the blink without delay for the technique and look at a finite state machine for further help.
This is a good place to start.
http://www.thebox.myzen.co.uk/Tutorial/State_Machine.html