When the first slide is faded in, it's doing so against the background of the main content DIV container, since there's no "previous" slide proceeding it. I'm not sure there's an easy way to overcome this unfortunately. You can try giving the main content DIV a black background, which may work better than the default white:
Code:
.sliderwrapper{
position: relative; /*leave as is*/
overflow: hidden; /*leave as is*/
border: 10px solid navy;
border-bottom-width: 6px;
width: 400px; /*width of featured content slider*/
height: 250px;
background: black;
}
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