Hello again,
Here is a picture I put together with the values of the resistors and how I put the LEDs together. I'm not exactly sure where in the past four pages I got these diagrams, it's not exact to the post you posted. That was more for the transistor setup I believe.
http://www.themoviecraig.com/files/led-segments.png
After looking at the programming for the arduino and the lack of time I have on just this small piece of the larger project puzzle... I definitely want to change my mind and use the arduino as the processor. The outputs of the arduino are either high or low. So I can program it to toggle hi and low, then shut off for a while. Due to time restraints, I would love to have two of these outputs - connect one to all 40 reds, and the other to all 40 blues.
I figure I can use some solid state method using larger transistors, and tried to research but didn't find anything. I know there are relays, but am afraid they might not be fast enough - but desperate times...
thanks again for your help - I'm soooo close!