Ok first of all what is the newest version of photoshop's exact name?
Is it 3.2.7 Elements?
And, how do I go about making a .gif file?
Thanks,
~Zack

The newest version of Photoshop is Photoshop CS3 (Extended).
When you're inside it, you go to Window > Animation, and then you have multiple frames where you can adjust the layers slightly on each frame to make an animation, and then play with the delay times until you get something you like. Then you go to File > Save optimized as > Save it.
You can also do animation with other versions of Photoshop with Imageready.
Here are some tutorials for specific animations (will get you the hang of the process):
http://forums.d2jsp.org/index.php?showtopic=3925345&view=findpost&p=20106925
http://forums.d2jsp.org/index.php?showtopic=3417311&view=findpost&p=17456588