How to Animate Avatars

I made this when I was trying to make my own avatar but the only tutorials I could find were for Image Ready. I think I'll also do a watermark one because I found the same problem there too.

PLEASE READ:
This tutorial, does not work with photoshop CS or CS2! To animate something if you have CS or higher you need to use IMAGE READY. If you have Image Ready, use it to begin with, it is much easier to animate.

I have a tutorial for Image Ready here: [link]