A quick attempt at fading from solid color to none...

LPD8806_Fader.ino

//adapted from LEDneltKit written bu Adafruit and found here:
//https://github.com/adafruit/LPD8806/tree/master/examples/LEDbeltKit
//Fades a color in and out
//2013.06.04 - Luis E. Fraguada
//looking for suggestions!

#include "LPD8806.h"
#include "SPI.h"

int dataPin = 16;
int clockPin = 15;

LPD8806 strip = LPD8806(12, dataPin, clockPin);

void setup()
{

  // Start up the LED strip
  strip.begin();

  // Update the strip, to start they are all 'off'
  for(int i=0; i<strip.numPixels(); i++) strip.setPixelColor(i, 0);
  strip.show();
}


void loop()
{
  pulse(127,127,127,100, 10); //r from 0 to 127, g from 0 to 127, b from 0 to 127, steps, wait
}

//pulse
void pulse(uint8_t r, uint8_t g, uint8_t b, uint8_t steps, uint8_t wait)
{
  int t = 0;
  float lev = 0;
  boolean dir = true;
  byte r2, g2, b2;

  while(1){
    if(t < steps && dir)
    {
      t++;
      lev = ((float)t / (float)steps);
    }
    else
    {
      dir = false;
      if(t > 0){
        t--;
        lev = ((float)t / (float)steps);
      } 
      else {
        dir = true;
      }
    }
    for(int i=0; i<strip.numPixels(); i++) {
      r2 = (byte)((float)r * lev);
      g2 = (byte)((float)g * lev);
      b2 = (byte)((float)b * lev);
      strip.setPixelColor(i, r2, g2, b2);
    }
    strip.show();
    delay(wait);
  }
}