This article has detailed steps for inserting an animated picture into your blogspot blog.
However some people have reported that if they upload an animated picture from their PC, these instructions don't work correctly: the picture is uploaded but animation is missing.
The work-around seems to be to upload the picture to a hosting site (like Picasa) first - independently of blogger. Then note the URL of the uploaded file, and enter it as:
- The web-address (URL) during the picture upload process, or
- The URL when you use the Picture gadget.
You can then manipulate the uploaded picture as per any other picture (ie for gadgets, drag the gadget around in the Layout / Page Elements view, or drag the picture or manually relocate the HTML for images that are inside posts.
Related Articles:
Integrating Picasa and Blogger
Finding the URL of a picture that's stored in-Picasa web-albums
Inserting a picture into a blogger post
Inserting a picture as a gadget