Nope, you are both wrong!
Go on KaZaA and search for Ulead Gif Animator.
It's a program that can either take regular pics that you have or videos that you have on your PC. Simply start the program, click Video, select the video, and it loads the video in frame form. Then I simply find a clip(basicly a series of related frames), and delete all the frames exept the ones I want to keep. Then I go to image size, set the bigger number(ex: width 340pix, hight 280pix, I pick the width)to the forum limit(changes forum to forum), and it downsizes it equally. Then I go to Optomization Wizard and there's resolution settings. 256, 128, 64, 32, 16 bit. I go from the highest, and see how big the file size will be. Too big? I go down the list. Sometimes, it becomes junky looking, and I will go higher and just delete some of the frames so that the animation works and looks good. Then I go to save as, Gif, and whalla I have an awsome avatar.
For pics, I make sure that they are all the same size so that downsizing is equal. Then I put them in some sort of order, and usually words on the next frames after the pics.
It's simply confusing...I'm good at it though.