I use the Gimp with the animation package to convert .avi's to .gifs it is free and open source No Watermark also I came to use it more than I do photoshop for most graphics, easily create animations from bmp's jpg's png's etc as well. apply text to photos,all kinds of text functions ( it's what the site cool text uses to make flaming text etc.)slight learning curve but well worth it, to convert .avi to .gif is very easy with the gap, (Gimp animation package) installed, just a few clicks.
heres a link to main site,there are Many sites devoted to the Gimp.
http://www.gimp.org/
