Two bitmap files create animated logo, Both have the exact same configuration expect for dimensions. The large image is 38 pixels wide and the small is 22 pixels wide.

For this example we will use the large image for the steps.

Use any image composer that handles bmp files to make a strip that is 38 pixels wide and 38 times the number of frames you wish to have in height.  (38 pixels x 10 frames = 380 pixels high).

Create your animation in the 38x38 squares.  Once the image is complete and the steps below is performed, the image file will be animated by starting with the top frame and then working its way down.  When it reaches the bottom it will simply loop back to the top.  When not animated, the first frame of the image will be shown.

Then navigate in the registry to:

[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolbar]

Create two new string values named 'SmBrandBitmap' (value should be the path and filename of the image of the small image) and 'BrandBitmap' (value should be the path and filename of the image of the large image).

To restore the default animated logo, Navigate to [HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolbar] in the registry and delete the 'BrandBitmap' and 'SmBrandBitmap' string values.

IE or outlook will have to be restarted for changes to take effect.

For More info visit: http://support.microsoft.com/support/kb/articles/q176/7/13.asp