Posted 01 October 2009 - 12:09 PM
As of Office 2007 animated gifs are not supported in e-mails. This is because the rendering engine of Outlook was changed from Internet Explorer to MS Word. The security enhancements gained by this are numerous and Microsoft has said that it does not plan to support animated gifs in their e-mail clients at all anymore. So I'm afraid you're out of luck with Outlook.
On a more personal note I'd like to point out that e-mails were never designed to be full of animations and other media. It was designed as a text-only medium. Further, images in e-mail is a security risk. Many e-mail clients, even most webmail services like Yahoo mail, will not display images by default. Also, since the images you want to use are locally stored rather than web-accessible they get sent as attachments rather than inline images. Only recipients using Outlook will see the images where you want them to be. Users of other e-mail clients such as Thunderbird, Eudora, Kmail, Apple Mail, Mutt, Pine, Evolution, Seamonkey, Pop Peeper, or hundreds of others may or may not see the images the way you want them to. More often than not the images will come along as attachments with no reference to where they ought to be displayed. </rant>