Animator component, instead of Animation

I've pretty new to unity and C# and general development, as such i'm learning using the UGDE book by Will Goldstone as was highly recommended. I understand the book is for Unity 3.x but most of it has translated well into 4.3, but i've got to chapter 10 where i'm trying to add an animation of a fade to black.

I've followed the instructions about creating a script call "Animator" (did receive a message saying it might have issues due to script being call the same as a component)& one called "Fader". The have a GUITexture selected i've opened the Animation window and followed the steps there. within the instructions it say that the "Animation" component will automatically be added to the object, but i'm getting a "Animator" component instead. which has completely different parameters.

With the Animator component i get the fade to black working (though looping atm), but trying to follow the book i've tried removing (&/or just disabling) the Animator then manually adding the "animation" component. But if i do that the "fadeOut" animation doesn't do anything (screen is blacked out from hitting play and doesn't loop)and i receive a warning in the console.

"The AnimationClip 'fadeOut' used by the animation compoent 'fade' must be marked as legacy"

So a couple of questions;

1. Why is it automatically adding the "Animator Component" and not the "Animation Component"?

2. What does the warning message mean?

3. How can i get the Animation to work?

Thanks for your help in advance