I covered most of what's explained here once before in , but I like to to think I've improved since then. For instance, back then I used Vista. *shudder*.
This lovely little guide is 9:30 in leagnth, just barely under the 10min mark. It explains the finite basisc of Animation with Photoshop CS3 Extended and above.
You are required to have the Extended version of Photoshop CS3 or above to use these techniques! I do not know how animating in ImageReady works, so please don't ask!