Firstly, your dresses are soooo gorgeous! Where were you when my daughter was that small?

I think the bid increment thing is to do with how much a bidder placed as their highest bid.

So if the item was $2 and Johnny bid $6, it would only show as $2.50.

But then when Mary comes along and bids $6.10. Johnny's bid of $6 automatially gets placed but then is immediately outbid by Mary's $5.10 and the new price is $6.1, making it look like the latest bid increment was only 10c...

Is that clear as mud? LOL

The bidding increments are the same, 50c as the items are over $5 and less than $25.

http://pages.ebay.com.au/help/buy/bid-increments.html

On your auction that is currently at $7.55 click on the Show Automatic bids and you'll see how the bidding has increased.

The bidding increments aren't different, but the price is based on the bid amounts.

For example, an item starting at $5 will have 50c bidding increments. Buyer A bids $5.00, then buyer B bids $6.00 - the price will rise to one increment higher than Buyer A's bid, so $5.50.

If instead Buyer A bid $5.25, the price would rise to $5.75 when buyer B placed the bid of $6.00.