Ok 2 things that I changed to get this working.
1. Removed spaces in your image names. This may not be a problem in most browsers but some like different versions of IE have this issue. When using images for the web you always should make a habit of using underscores or hyphens for your images.
2. I forgot that for this template we didn't have the option to hide images for the fader. So there was some CSS added to the template.css that I removed:
.jdGallery {
overflow: visible !important;}
.jdGallery .slideElement {
background:none !important;}