I appreciate the detailed support.
Still having an issue, but I must be almost there.
Right now, as soon as the second state is activated, the GUI image just pops right up, still no fade.
You mentioned that in "Graphic Set Color", you should set the Color Alpha to "New Alpha" (in my case, I'm using "Alpha Visible). When doing that though, the alpha is instantly set to 255, rather than running through the interpolation. So instead, I used a third float variable called "Newspaper Alpha Float" that is used in "Graphic Set Color" as well as the stored alpha in "Get Color RGBA".
So to surmise, my variables are as follows:
Newspaper Alpha (Color Variable).
Alpha Invisible: 0.
Alpha Visible: 255.
Newspaper Alpha Float: 0.
Sorry if I've missed something obvious here; you've been a big help.
EDIT: And to clarify, Newspaper Alpha Float DOES seem to be interpolating correctly, just no fade.