If you have a look at my new website where i've used your theme, the slider seems to be very laggy.
I dont suppose you would know what would cause that do you?
To change the transition type go to your admin panel > avisio options > slideshow options. There you can set 3 types: slide, fade and drop. If you want to display a block transition you have to play with the two values "Rectangle width" and "Rectangle height" on this page (i.e. set both to 50px). You'll get boxes with 50px height and width then.
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