Так?
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<title>TEST</title>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8" />
<style type="text/css">
div.banner {
width: 200px;
height: 100px;
border: 3px solid green;
text-align: center;
display: none;
}
</style>
<script type="text/javascript" src="jquery-1.3.2.js"></script>
<script type="text/javascript">
<!--
function fadeInOut(el, cb) {
$(el).fadeIn(2000, function(){
$(el).fadeOut(2000, function(){
cb && cb(el);
});
});
}
$(function(){
fadeInOut($('div.banner:first'), function(el){
var next = el.next('div.banner');
next.size() && fadeInOut(next, arguments.callee);
});
});
//-->
</script>
</head>
<body>
<div class="banner">I'm 1st div in query</div>
<div class="banner">I'm 2nd div in query</div>
<div class="banner">I'm 3rd div in query</div>
<div class="banner">I'm 4th div in query</div>
<div class="banner">I'm 5th div in query</div>
</body>
</html>