I'm sure there are free programs that can make animated gifs, as long as you make each frame in another program. Try searching www.download.com for "gif animator" or similar.
I know there was a Gif Animator included in the old Frontpage versions, and you can also make gif animations in Macromedia Flash MX (IIRC).
I once used software to record a movie from a game (CnC Generals) and then used other software to split the movie into individual frames. By only keeping every second or third frame the size can be reduced.
edit: Here it is btw, Colonel Burton in action (it was supposed to be an avatar):
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