Just a modification of Yuval's code to get two at a time behavior:
$(document).ready(function(){
$("ul li").hide();
show_list_item();
});
function show_list_item(){
$("ul li:hidden:first").fadeIn("slow", function(){
if($("ul li:hidden").length == 0){
$("ul li").hide();
}
});
$("ul li:hidden:first").fadeIn("slow", function(){
if($("ul li:hidden").length == 0){
$("ul li").hide();
}
show_list_item();
});
}
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