psychephylax:
The issue I am having is that the blue channel doesn't PWM at all. After everything goes dark after the green fade, there's a split second pause and then blue turns on for a short period and goes off...It doesn't alter the brightness at all. Can someone point me in the right direction?
Use this core...
http://code.google.com/p/arduino-tiny/
PWM is supported on digital pins 0, 1, and 4.