This tutorial will take an image, and make animated fire around the edges. This will be the final result:

Step 1. Load original Image

First load up your favourite image. File -> Open...

Step 2. Make sure image has is in RGB Mode, and has transparency

Make sure that it is in RGB Mode. Right click on the image, and select Image->Mode->RGB. (If RGB is greyed out, then it is already in RGB mode).

Now add the alpha channel (transparency). Right click on the image and select Image->Layers->Add Alpha Channel

Step 3. Remove the areas where the fire will be place.

Press "Fuzzy Select" on the tools window.

Now click on the area that you want removed (left mouse button). Then right click on the image, and select Edit -> Cut. Of course for your image you might want to use the eraser, or some other tool to remove the pieces that you want to put on fire!

Step 4. Add Fire!

Now you are ready to put your image on fire. Right click on the image, and select FT -> Alpha to Logo -> Flaming...

Now select the options and then click OK.

This is what your window will look like.

Step 5. Save the Image

Now you need to save the image as an animation. Right click on the image, and select File -> Save As...

Enter the filename you want and click OK. filename.gif is a good choice.

Be sure to select "Save as Animation", then click Export.

You will want "Loop forever" selected, and change Frame Disposal to "Replace". You can also change how fast the animation will go by changing Milliseconds.

Here is the result.