Would it be possible to use a script or something to allow msn to use moving GIF files as Display Picture's so you don't just get the first slide in the file but the whole animation moving?

Not possible. I'm no expert, but when you choose a display picture it uploads that image to the servers, if its an animated gif it only allows the first frame and it won't allow animations, so there's nothing you can do I'm afraid. If it was possible it would have been made already.

Thanks for your suggestion though!

I have seen a guy with a moving display pic, that's how I got ythe idea (stole it) but I was curious.

Dynamic Display Pictures can move/animate, like the ones on http://www.mypersonalexpression.com/. But everything is done server-side, which means you can't change or add animated DPs yourself, you are limited by the ones that are offered on services licensed by Microsoft, like http://www.mypersonalexpression.com/ for example.

Oh well, thanks dude.