Create a new Flash movie and change the size of
the movie to 200x100. Enter the text what you
want to display. Set the font color of text to
other then stage color.
Now to give fading effect we have to convert
our text to movie clip. For this select the
text you have just written and press F8 to convert
it to movie clip. Give it a name of your choice,
I have given it txtmc.
Back in our flash movie insert a keyframe at 20
by pressing F6 at that frame or by right clicking
at that particular frame. Slelect text movie clip
at that frame and set alpha of your movie clip
to 20 through properties panel. Insert a keyframe
at frame 40 and set alpha of movie clip to 100
again.
Finally just create motion twean on all three
keyframes (you can do this through right click
on that keyframe).
Just press ctrl+enter to test movie and see
the final results.