I took a look around the Microsoft support pages and couldn't find anything helpful... only stuff about animations used in PowerPoint presentations losing their motion when exported.
I'll see if I can dig up anything else to try. Stuff like this is frustrating, I know.
Your chat IS working now though right? Because I would hate to suggest any troubleshooting procedures that might fix the animation but lose chat again for you...
If you are really into trying to get this solved, you could try downloading a different browser, like Netscape, and see if you get the animations there... you might end up liking that browser better than IE anyway.
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http://www.idexter.com
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-- The world is what we make of it --
-- Dave
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www.idexter.com