Hey,
I know how to create my own Gif animations.
However I was wondering whether there was any software that would specificaly allow me to edit the existing msn animated emoticons or create my own. Like a free download that allows easy modification/creation.
This may be a little hopeful as it would dramatically reduce the amount of effort included but......oh well, worth a try.

well, its not free but you can try Adobe Photoshop. its a great program to use, although it may be complicated

Well I have made my emoticon and I am happy with the animation. Is there any way after exporting the file you can modify the comments on the porperties (right click > properties). I know this is possible with AVI's when compiling them. The software I used did not give me any options to do this and trying to find an answer on google proved difficult as I cant find a way to put it.