Ok im looking to know how I go about animating my avatar?
You choose a moving GIF as your avatar and that's it.
Any decent animation software can produce moving GIFs for you.
I have photoshop and imageready. I have my design finished and all just looking to make it flash.
How and what software do i use?
The progs you mention are for manipulation.
Google with 'gif animator' and take your pick.
You can use Photoshop/ImageReady to make your animation. Read The Friendly Manual.