First you will need a sequence of images. It does not matter if the sequence are gif or jpg. However, the final output of the animated image MUST be a gif, otherwise it will not animate. Most animations will not be able to be transparent because the images are stacked on top of each other and, unless they all cover the same area in the image, they will show through. These eyeball images are all the same size and location so it is able to be transparent. I am not going to go in to the details of creating the images used in this sequence. Some of these eyes were just annotated on a page, and some were manipulated to get the effect that I wanted either by rotating it or annotating on top of it. Once you have read through this tute you can practice animation with any image by taking it to an IM Studio and under transform hit the flop button, and then output that image. Now use that and the original to animate.
For this example You wil need to place your sequence of images in a directory. The images must be named in a numerical order and they must also all be gif or all be jpg at this point. If you want to repeat an image in the sequence make a copy of it and give it another number in the order you want it to appear.
In that directory you should have a file called index.html. Go in to that file and reference your images as in this example: