OK, I think I got this:
Create the pad track. If necessary, copy the notes to another track for harmony. Once the pad is set up the way you want it, and you've recorded the part on notation (or by copying), then convert to audio track, using the option to keep the instrument track when prompted (which I guess I left unchecked last time). Once the track is converted , THEN you can use the Fade to cursor IN/OUT.
That function only seems to work once the track is converted to an audio file, at which time you can't change/alter or see the notes. It's just an audio file at that time.
Does that sound right to anyone else?
Just bumpin' around in the dark here, but that seems to be the answer. I wasn't clear on the distinction between an instrument track and an audio track, until I bumped into it, and I left off the option to retain the instrument part when I converted.